Which of the Following Is NOT a Feature of Convertible

question 76

Multiple Choice

Which of the following is NOT a feature of convertible notes?

• A) Convertible notes are usually issued at a price close to the market price of the share.
• B) The expectation of the note holder is that the share price will increase over the term of the note.
• C) Convertible notes offer a higher interest rate than straight debt instruments.
• D) A convertible note may be made by direct placement to shareholders.

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Definitions:

Seamounts

Underwater mountains formed by volcanic activity, rising from the ocean floor but not reaching the surface.

Smooth

Describes surfaces with an even or flat texture that is free of abrasions or roughness.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, often leading to the formation of new oceanic crust.

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges as tectonic plates diverge, leading to the gradual widening of the ocean.