Which of the following is true regarding convertible bonds? Multiple Choice A convertible bond's value will exceed the sum of the straight bond value and the conversion value unless the firm is in default or bondholders are forced to convert The conversion value of a convertible bond is not affected by the value of the firm's underlying common stock. A distinction of convertible bonds is that the conversion privilege can be separated from the bond and sold by the owner. When a convertible bond is converted into common stock, the company receives cash for the transfer. The floor price of a convertible bond is the greater of the straight bond value and the conversion value