Concerning Convertible Bonds,which One of These Statements Is False

Multiple Choice

Concerning convertible bonds,which one of these statements is false?

A) The value of a convertible bond can be greater than its straight bond value.
B) The value of a convertible bond may be greater than its conversion value.
C) A convertible bond can be separated into two distinct securities.
D) The coupon rate on a nonconvertible bond will generally exceed the coupon rate on an otherwise identical convertible bond.
E) An increase in the conversion price lowers the conversion ratio.