Which of the Following Statements Regarding Convertible Bonds Is True

question 30

Multiple Choice

Which of the following statements regarding convertible bonds is true?

• A)The floor value is the lowest price a convertible bond will sell for.
• B)The convertible bond's floor value is determined by the maximum of the straight bond value and the conversion value.
• C)If the share price rises above the conversion price, investors will convert the bonds.
• D)All of the above statements are true.

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