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Concerning convertible bonds, which one of these statements is false? Multiple Choice C) The value of a convertible bond may be greater than its conversion
Concerning convertible bonds, which one of these statements is false? Multiple Choice C) The value of a convertible bond may be greater than its conversion value. An increase in the conversion price lowers the conversion ratio. The value of a convertible bond can be greater than its straight bond value. A convertible bond can be separated into two distinct securities. The coupon rate on a nonconvertible bond will generally exceed the coupon rate on an otherwise identical convertible bond
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