Which of the Following Statements Is True

question 123

Multiple Choice

Which of the following statements is true?

• A) Convertible corporate bonds are more secure than government bonds.
• B) Convertible bonds often pay 1-2% more interest than nonconvertible bonds.
• C) Because of the conversion feature, it is not necessary to evaluate convertible corporate bonds.
• D) Investors enjoy the lower risk of a corporate bond but also take advantage of the speculative nature of common stock.
• E) Even after convertible bondholders convert their investments to common stock, the bondholders still receive interest payments.

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