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Company A issue a 10-year, 10% convertible bonds last year. This year, the company had to recall a new product due to some serious technical
Company A issue a 10-year, 10% convertible bonds last year. This year, the company had to recall a new product due to some serious technical issues. The consensus among equity analysts is that the companys future prospect appears to be poor. Given this information, the convertible bond price is likely to be primarily:
A. Credit sensitive.
B. Both Credit and Interest Rate sensitive
C. Interest rate sensitive.
D. Equity sensitive.
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