Which of the Following Statements Is True Regarding Convertible Bonds

question 67

Multiple Choice

Which of the following statements is true regarding convertible bonds?

• A) The holder has the right to sell these bonds back to the issuer if the bonds don't perform well.
• B) The holder can convert these bonds into an equal number of new bonds if they choose to do so.
• C) These bonds are convertible into common stock of the issuing firm at a prespecified price.
• D) These bonds have a variable interest rate.