A Convertible Bond Has Two Separate Bases of Value,the Bond

question 145

True/False

A convertible bond has two separate bases of value,the bond investment value and the bond conversion value.

---

Definitions:

Cash Dividends

Distributions of profits by a company to its shareholders in the form of cash.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Loans Receivable

Loans receivable are amounts owed to a lender by borrowers, recognized as assets on the lender's balance sheet.

Repayment

The act of paying back money previously borrowed from a lender.