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4. Among 4 following statements, which one (s) does not (do not) correspond to a conventional Bond? 1- A conventional bond is a debt. 2-
4. Among 4 following statements, which one (s) does not (do not) correspond to a conventional Bond? 1- A conventional bond is a debt. 2- The bond holder does not have the right to vote in the company. 3- The bonds price has a positive relation with the required return. 4- Offers only variable coupons until maturity. a) Statement 3 and 4. b) Statements 1 and 3. c) Statements 2 and 3. Statement 2, 3 and 4 5. If we anticipate an decrease of the interest rate in the next 6 months, we should purchase bonds of which: a) Pie coupon rate is high and maturity is close. The coupon rate is low and maturity is close. cNThe coupon rate is high and maturity is far. d) the coupon rate is low and maturity is far. 6.You just purchased a convertible bond. Today, the strictly debt value is inferior relative to the conversion valuc. If the required return on common shares increases: a) The minimum price of the bond will decrease. b) The minimum price of the bond will increase. c) he minimum price of the bond remains the same. The strictly debt value of the bond will be superior to the conversion value. e) t is impossible to make that determination with this information
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