Convertible Bonds Have a Provision That Gives the Bondholder an Option

question 76

True/False

Convertible bonds have a provision that gives the bondholder an option to convert each bond owned into a fixed number of shares of common stock.

---

Definitions:

State-Dependent Memory

The phenomenon where information learned in a particular state or context is better recalled when in that same state or context.

Priming

A psychological effect whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

False Memories

An inaccurate or distorted recollection of an event that feels very real to the person remembering it.

Imagination Inflation

A phenomenon where vividly imagining an event can increase confidence that the event actually occurred in the past.