A Convertible Bond

Multiple Choice

A convertible bond:

A) Is a combination of a loan and a put option.
B) Normally has a perpetual conversion feature.
C) Has a value which is equal to its straight bond value plus it conversion value.
D) Has a minimum value which is equal to the greater of the two floor values.
E) Is worth an amount equal to the greater of the straight bond value or the conversion value plus the option to abandon value.