You gather the following information on a XYZ convertible bond:

Issue date: 15 September 2010 Maturity date: 15 September 2015 Coupon: 3.75% payable annually Issue size: $100 million Issue price: $1,000 at par Conversion ratio: 75

With 2 years to maturity the market price of XYZ common stock is $20 per share and the market price of the convertible bond is $1,500. For a small change in the value of the stock, the XYZ convertible bond will most likely exhibit:

Group of answer choices

stock-like characteristic

bond-like characteristic

Will be unaffected by the stock price of XYZ