A Convertible Bond Whose Conversion Value Is Less Than Its

question 108

Multiple Choice

A convertible bond whose conversion value is less than its call price is a(n) _________ bond.

• A) in-the-money
• B) Premium
• C) Discount
• D) out-of-the-money
• E) Intrinsic

---

Definitions:

Counterproposal

A proposal made in response to a previous one, typically with changes to terms or conditions.

Eliminate Need

The process of removing or reducing a requirement or necessity for something.

State Refusal

The act of officially or formally declining an offer, proposal, or request.

Future Controversy

Refers to potential disputes or debates that have not yet occurred but are expected to arise due to existing trends or developments.