Which One of the Following Statements Is True

question 62

Multiple Choice

Which one of the following statements is true?

• A)All convertible corporate bonds are quality investments.
• B)Convertible bonds often pay 3 to 4 percent more interest than nonconvertible bonds.
• C)Because of the conversion feature,investors are attracted to the conservative gain that common stock conversion may provide.
• D)There is no guarantee that bondholders will convert to common stock even if the market value of the common stock does increase in value.
• E)Even if convertible bondholders convert their investment to common stock,the bondholders still receive interest payments.

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Definitions:

Formal Agency Adjudications

Legal processes within federal agencies involving the resolution of disputes or determination of rights through hearings and decisions.

Office of Management and Budget

A federal office within the Executive Office of the President of the United States responsible for devising and submitting the president's budget proposal to Congress.

Cost-Benefit Analyses

The process of comparing the costs and benefits associated with a decision, project, or policy to determine its feasibility or desirability.

Independent Agencies

Bodies established by the government that operate independently from the executive branch to regulate or oversee specific activities.