Which of the Following Statements About Bonds That Are Both

question 67

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 bonds will be greater than the shares of stock that bond can be converted into.
• C) The decision to be made by the bondholders when the bonds are called is the same as they would have to make at maturity.
• D) By calling the bonds, the issuer can force bondholders to decide to convert at a time of the issuer's choice.

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