XYZ corporation issued a convertible bond with the following terms: an investor may convert $1000 face value of the bond to 20 common shares. If the common shares are trading at $60, which statement is correct? The price of the bond will respond more to changes in the price of the common shares than interest rates. The price of the bond will respond more to changes in interest rates than the price of the common shares. If bond holders convert the bond to shares, shareholders face dilution. A & C