In the Event That a Bank Converted Previously Issued CoCo

question 43

Multiple Choice

In the event that a bank converted previously issued CoCo bonds (contingent convertible debt) , then holders of the bonds would change from _____ of the bank.

• A) creditors to part owners
• B) creditors to debtors
• C) debtors to creditors
• D) part owners to creditors

---

Definitions:

Multilateral Free Trade Agreement

An agreement between three or more countries to reduce trade barriers and tariffs to encourage trade and economic cooperation among them.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries or to raise government revenue.

Trade Barriers

Measures implemented by countries to restrict or control the flow of goods and services across its borders.

Central American Free Trade Agreement

A trade agreement aimed at reducing tariffs and trade barriers among the United States and Central American nations.