General Characteristics of Convertible Bonds That Will Be Converted Include

question 7

Multiple Choice

General characteristics of convertible bonds that will be converted include all of the following except:

• A)the company will no longer have to repay the principal amount of the bonds.
• B)management fully intends that the conversion privilege will eventually be attractive to the investors.
• C)the investors will convert at or before maturity date.
• D)the market price of the shares will drop below the conversion price.

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