Which of the Following Statements About Coercive Bond Exchange Offers

question 54

Multiple Choice

Which of the following statements about coercive bond exchange offers is true?

• A)A bond with a coercive exchange offer provides upside potential with limited downside risk to the bondholders.
• B)A bond with a coercive exchange offer would have to offer a higher rate of return, all else equal.
• C)The owner of a bond that has a coercive exchange offer will be better off if he or she chooses not to participate in the offer.
• D)If all the bondholders choose to participate in a coercive exchange offer, they will collectively be better off.

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