Where Does a "Convertible Bond" Get Its Name

question 48

Multiple Choice

Where does a "convertible bond" get its name?

• A) The option of converting into shares of common stock
• B) The option of increasing its coupon payments when interest rates increase
• C) The option of converting from zero-coupon to coupon-paying bond
• D) The option of increasing yield without decreasing price

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Definitions:

Vicarious Conditioning

A form of learning in which the learner acquires a conditioned response merely by observing another participant being conditioned.

Insight Learning

A form of problem-solving that occurs when a solution is suddenly realized after a period of contemplation, often without the trial-and-error processes associated with operant conditioning.

Garbage Can

A metaphor in organizational studies describing decision-making in organized anarchies where decisions are made randomly.

Principle Of Belongness

An aspect of learning theory suggesting that items or ideas that are perceived as belonging together are more easily remembered.