Convertible bonds are suitable for investors who

Select one:

1. want the possibility of benefiting from a rise in the issuer's share price.
2. have a lower risk tolerance and are seeking income.
3. want to maximize interest returns in periods when interest rates are low.
4. want to convert the bond into a longer term at the same rate of interest.

2. The contractual rate of interest on a bond is always stated as a(n)

Select one:

1. daily rate.
2. monthly rate.
3. semi-annual rate.
4. annual rate.