Which of the Following Is Not a Characteristic of Convertible

question 53

Multiple Choice

Which of the following is not a characteristic of convertible bond issues?

• A) The average size of the offering is small.
• B) A 15-20% conversion premium at the time of issue is common.
• C) Large companies with billions of dollars in sales and assets are the primary issuers.
• D) Primary issuers tend to have less than AAA bond credit ratings.

---

Definitions:

Purchase Contract

A purchase contract is a legal agreement between a buyer and seller detailing the terms and conditions under which a product or property is sold.

Legal Offer

A proposal by one party to another intended to create a legally binding agreement upon acceptance.

Transformation Processes

The operations or activities that convert inputs into outputs, adding value in manufacturing or service provision.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization.