Because Convertibility Is a Desirable Feature for Investors, Convertible Bonds

question 14

True/False

Because convertibility is a desirable feature for investors, convertible bonds tend to offer a higher return than nonconvertible bonds.

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Definitions:

Selective Distribution

A distribution strategy where a product is sold at select outlets to maintain its image and high-quality perception.

Intensive Distribution

A strategy where a product is made available in as many outlets as possible, maximizing visibility and accessibility to consumers.

Exclusive Distribution

A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products.

Distribution Intensity

The level of availability of a product in a particular market; can range from intensive (available everywhere) to selective or exclusive (available in few locations).