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All of the following statements regarding convertible bonds are true except -if the market price of common stock increases substantially, bondholders with convertible bonds benefit.

All of the following statements regarding convertible bonds are true except

-if the market price of common stock increases substantially, bondholders with convertible bonds benefit.

-convertible bonds can be converted into common stock at the option of the issuing company.

-convertible bonds sell at a higher price and pay a lower rate of interest than those without the conversion option.

-bondholders with convertible bonds receive interest on the bonds until conversion.

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