Multiple Choice
Why should a convertible bond always be valued at more than its bond value or its conversion value up until maturity?
A) The bond holder is receiving higher interest rates.
B) The holder can decide later whether to own the bond or the stock.
C) The conversion ratio may be decreased.
D) The bond does not have to be given up to exercise the option.
Correct Answer:
Verified
Correct Answer:
Verified
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