Concerning Convertible Bonds, Which of the Following Statements Is Not

question 52

Multiple Choice

Concerning convertible bonds, which of the following statements is not correct?

• A)With regard to security, most convertible bonds are secured by common stock (i.e., they are collateral trust bonds).
• B)For most convertible bonds, the issuing firm can, under certain circumstances, effectively force bondholders to convert to common stock.
• C)When a convertible bond is called, the owner has the option of receiving cash or stock for the bond.
• D)All of the above are incorrect.
• E)All of the above are correct.

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