Question A: ( Choose the most correct option)

How can convertible bonds be redeemed at the maturity?

a.Convert them to stocks

b.Convert them to other assets with which these bonds were secured

c.Convert them to cash

d.A and C answers are correct

e.All answers are correct

Question B: (Choose the most correct option)

When a bond is sold at a face value, its yield is___________ the coupon rate.

a.lower than

b.equal to

c.There is no right answer

d.higher than