Concerning Convertible Bonds,which One of These Statements Is False

question 34

Multiple Choice

Concerning convertible bonds,which one of these statements is false?

• A)The value of a convertible bond can be greater than its straight bond value.
• B)The value of a convertible bond may be greater than its conversion value.
• C)A convertible bond can be separated into two distinct securities.
• D)The coupon rate on a nonconvertible bond will generally exceed the coupon rate on an otherwise identical convertible bond.
• E)An increase in the conversion price lowers the conversion ratio.

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