Convertible Bonds Are Attractive to Bondholders Because

question 148

Multiple Choice

Convertible bonds are attractive to bondholders because

• A)they usually carry a higher rate of interest than non-convertible bonds.
• B)they carry a convertible interest rate that can be increased when the market rate of interest increases.
• C)they can be converted into stock at the bondholder's option.
• D)the issuing company cannot retire the bonds before maturity.

---

Definitions:

Wage Rise

An increase in the rate of pay received by employees.

Leave Loading

An additional payment made to employees on their annual leave, often calculated as a percentage of their normal salary.

Work Days

Days on which business is conducted, typically excluding weekends and public holidays.

Wage Rise

An increase in the rate of pay employees receive for their work, often as a result of negotiation, economic conditions, or to match inflation rates.