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Which of the following is correct regarding convertible bonds? a. The coupon rate for a convertible bond will generally be greater than an equivalent nonconvertible
Which of the following is correct regarding convertible bonds?
a. The coupon rate for a convertible bond will generally be greater than an equivalent nonconvertible bond. | ||
b. The value of a convertible bond is generally greater than the value of an equivalent bond with no conversion feature. | ||
c. The value of a convertible bond will always be greater than its conversion value. | ||
d. The conversion value of a convertible bond is specified in the bond indenture. |
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