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.
Answer: B
You might also like to view...
Retail tasks can be performed _____
a. by the retailer, manufacturer, wholesaler, specialists, or consumers b. only by the retailer c. by the retailer, manufacturer, or wholesaler d. by the retailer, manufacturer, wholesaler, or specialists
Armed only with his fingers, the owner decides that the safest forecasting approach is a linear trend line. His fingers are aching by the time he reaches May and he is worried about his ability to stuff tacos during tomorrow's dinner rush
Help him out by finding the forecast for June. A) 673.3 B) 628.2 C) 651.4 D) 599.3
The key variables in the owner wealth maximization process are ________
A) market risk premium and risk B) cash flows and risk C) risk-free rate and share price D) total assets and risk
Commercial paper is ________
A) sold at its par value B) sold at a discount from its par value C) sold at the prime rate D) sold at a premium from its par value