Which of the Following Statements About Bonds That Are Both

question 62

Multiple Choice

Which of the following statements about bonds that are both convertible and callable is NOT true?

• A)If these bonds are called by the issuer,the holder can choose to convert them rather than let them be called.
• B)Prior to maturity,the value of such a bond will be greater than the shares of stock that bond can be converted into.
• C)The decision to be made by the bondholder when the bonds are called is the same as she would have to make at maturity.
• D)The issuer can force bondholders to decide whether or not to convert at a time of the issuer's choosing.

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Definitions:

Plurality Opinion

A judicial opinion agreed to by more justices than any other opinion in a case but not achieving a full majority.

Bill of Rights

A document listing the fundamental rights and freedoms that are protected and guaranteed to all citizens, often forming a part of a country's constitution.

First Ten Amendments

Collectively known as the Bill of Rights, these amendments to the U.S. Constitution guarantee fundamental rights and protections to American citizens.

Constitution

The fundamental legal document that establishes the framework of a governmental system, outlines the rights and duties of citizens, and defines the distribution of power among the branches of government.