​If a Bond Lacks a Conversion Feature

question 1

Multiple Choice

​If a bond lacks a conversion feature,
​1) the bond would have a lower coupon
2) the bond would have a higher coupon
3) the price of the bond would be more responsive to changes in interest rates
4) the price of the bond would be less responsive to changes in interest rates

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

Efficient Use

A method or strategy that aims to achieve maximum productivity with minimum wasted effort or expense.

Ether

An organic compound characterized by an oxygen atom connected to two alkyl or aryl groups, known for its use as a solvent and in the formation of more complex molecules.

Cyclopentanol

A cyclical alcohol with the chemical formula C5H9OH, featuring a five-membered ring structure with a hydroxyl group.

Organic Product

A compound or substance that is derived from living organisms and contains carbon.