When Issued, Most Convertible Bonds Are Issued ________

question 10

Multiple Choice

When issued, most convertible bonds are issued ________.

• A) deep in the money
• B) deep out of the money
• C) slightly out of the money
• D) slightly in the money

---

Definitions:

Inelastic

Describing demand that does not significantly change with the price changes of a good or service.

Income Elasticities

Refers to the sensitivity of the demand for a good to changes in the income of the consumers who buy this good.

Normal Goods

Products that see an increase in demand when consumer income grows, and experience a drop in demand as consumer income declines.

Wheat Yields

The quantity of wheat produced per unit of land area.