Which of the Following Statements About Convertible Bonds Are True

Multiple Choice

Which of the following statements about convertible bonds are true?
I. The conversion price does not change over time.
II. The associated stocks may not pay dividends as long as the bonds are outstanding.
III. Most convertibles are also callable at the discretion of the firm.
IV. They may be thought of as straight bonds plus a call option.

A) I and III only
B) I and IV only
C) I, II, and IV only
D) III and IV only