The Conversion Feature of a Bond Permits A

Multiple Choice

The conversion feature of a bond permits a:

A) company to convert a high coupon rate bond into a lower coupon rate bond.
B) bondholder to exchange his or her bonds for the company's common stock.
C) bondholder to redeem a small percentage of the bond every year.
D) company to convert the face value of the bond to the market price of the bond.
E) company to trade outstanding bonds with a term deposit in a financial institution.