A Convertible Preference Share Is Similar to a Convertible Bond

question 30

Multiple Choice

A convertible preference share is similar to a convertible bond except:

• A)the conversion ratio is fixed (given).
• B)the conversion price is fixed (given).
• C)the time to maturity is infinite.
• D)All of the above.
• E)None of the above.

---

Definitions:

Teaspoons

A small measuring spoon used primarily in cooking and baking to measure an amount of an ingredient, typically equal to about 5 milliliters.

Fractions

Mathematical expressions representing the division of one quantity by another, indicating a part of a whole.

Lowest Terms

The most basic version of a fraction in which both the numerator and denominator are minimized to their lowest possible figures, yet the fraction's value remains unchanged.

Mixed Numbers

A number consisting of an integer and a fraction, used to represent quantities that are more than a whole but less than the next whole number.