Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Convertible corporate bonds are more secure than government bonds.
B) Convertible bonds often pay 1-2% more interest than nonconvertible bonds.
C) Because of the conversion feature, it is not necessary to evaluate convertible corporate bonds.
D) Investors enjoy the lower risk of a corporate bond but also take advantage of the speculative nature of common stock.
E) Even after convertible bondholders convert their investments to common stock, the bondholders still receive interest payments.