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Company A and company B issue convertible bonds with identical characteristics except that company As bond is also callable. Both companies also have identical stock
Company A and company B issue convertible bonds with identical characteristics except that company As bond is also callable. Both companies also have identical stock characteristics. Which of the following are true?
a.The coupon on company As convertible bond will be lower than on company Bs bond b.The coupon on company Bs convertible bond will be lower than on company As bond c.The coupon on company As convertible bond will be equal that on company Bs bond d.It is not possible to determine
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