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Why should a convertible bond always be valued at more than its bond value or its conversion value up until maturity? A. The conversion ratio
Why should a convertible bond always be valued at more than its bond value or its conversion value up until maturity?
A. The conversion ratio may be decreased.
B. The bondholder is receiving higher interest rates.
C. The conversion value does not have an upper bound.
D. The bond does not have to be given up to exercise the option.
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