Which of the Following Statements About Bonds That Are Both

question 70

Multiple Choice

Which of the following statements about bonds that are both convertible and callable is NOT true?

• A) If these bonds are called by the issuer, the holder can choose to convert them rather than let them be called.
• B) The decision to be made by the bondholder when the bonds are called is the same as she would have to make at maturity.
• C) The issuer can force bondholders to decide whether or not to convert at a time of the issuer's choosing.
• D) Prior to maturity, the value of such a bond will be greater than the shares that bond can be converted into.