Reviewing the Amounts of Income That You Can Realistically Expect

question 42

True/False

Reviewing the amounts of income that you can realistically expect to receive from Social Security and your employee pension plan helps you to decide whether they will be adequate to meet your needs.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a predetermined period.

Conversion Ratio

The number of shares a bondholder can receive upon converting their bonds into equity shares.