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    Intermediate Accounting Study Set 12
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    Exam 4: Complex Financial Instruments
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    Convertible Bonds
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Convertible Bonds

Question 21

Question 21

Multiple Choice

Convertible bonds


A) have priority over all other types of bonds.
B) are usually secured by a first or second mortgage.
C) pay interest only in the event earnings are sufficient to cover the interest.
D) may usually be exchanged for common shares.

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