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  4. Quiz 8: Bond Markets

Bondholders Will Not Convert Their Convertible Bonds into Shares of Stock

Question 28
True False

Bondholders will NOT convert their convertible bonds into shares of stock only when the conversion price is greater than the market price of the stock.

Related questions
Q 29
The conversion feature of a bond is to give the issuer the opportunity to repurchase bonds at a stated price prior to maturity.
Q 30
Which of the following is not an example of capital market securities? A) common stocks B) convertible bonds C) commercial paper D) mortgages
Q 31
The secondary markets for capital market securities have facilitated economic growth in the U.S. because A) they help provide marketability for capital market claims. B) they have increased people's willingness to buy capital market claims. C) they make people more willing to invest because they can more easily diversify their risk. D) all of the above
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