A Step-Up in the Conversion Price Refers to

question 110

Multiple Choice

A step-up in the conversion price refers to

• A) the ability of the company to step up the maturity of the bond to an earlier date.
• B) the provision that increases the conversion ratio the longer a convertible bond is held.
• C) a refunding of a convertible bond when the conversion value equals the pure bond value.
• D) none of the other answers are correct

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Definitions:

Substitute Goods

Products or services that can be used in place of one another, satisfying similar needs or desires.

Complementary Goods

are products or services that are used together, where the use or consumption of one increases the demand for the other.

Close-Substitute

A good or service that can easily replace another in satisfying consumer needs, with very little change in consumption patterns.

Consumer Preferences

The tastes, preferences, and priorities that individuals have regarding the consumption of goods and services.