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Which of the following statements would be a correct reason for purchasing a convertible bond? Choose one answer. You want to purchase a security that
Which of the following statements would be a correct reason for purchasing a convertible bond?
Choose one answer.
You want to purchase a security that you are guaranteed wont go down in value | ||
You would never have to worry about the company calling the bonds. | ||
You want to receive a higher coupon rate than you can get by purchasing the companys straight bond (i.e., bond without convertible feature). | ||
You are not sure of the market in the short-term but believe the company will grow and prosper over time |
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