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When an arbitrage-based hedge funds buy a convertible bond, they are likely to a. Lose money b. Ensure that the common shares of the company

When an arbitrage-based hedge funds buy a convertible bond, they are likely to

a. Lose money

b. Ensure that the common shares of the company can be shorted

c. Hedge the interest rate risk by shorting the TLTs

d. Cross hedge by shorting another convertible bond in the same industry

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