d

The buyer of a convertible security accepts a lower rate of interest: Select one: O a. due to a lower default risk O b. because of the possibility that the company may recall the security O c. due to the accessibility of funds O d. because of the possibility of becoming a shareholder in the future a bond investor pays $1030 for an annual coupon bond with a face value of $1000, it follows that: Select one: O a the coupon rate is higher than the current market yield. b. the current market yield and coupon rate are equal. Oc. the current market yield is higher than the coupon rate. O d. not enough information is given to compare the coupon rate and current market yield