Which of the Following Does NOT Relate to a Convertible

question 90

Multiple Choice

Which of the following does NOT relate to a convertible eurobond?

• A) A convertible bond contains an option for the holder to receive the redemption proceeds in another form.
• B) Convertible bonds may alleviate the foreign exchange risk of investors by being denominated in their currency.
• C) Investors cannot usually participate in rights issues, in contrast with those investing in straight eurobonds.
• D) For an equity-related convertible bond, an investor could benefit from increased equity prices.