As the price of the stock rises, the probability that a convertible bond will be called increases.

Name: As the price of the stock rises, the probability that a convertible bond will be called increases.
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Question

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Convertible bonds often contain a call feature that allows the issuer to force conversion into shares of stock if the stock price reaches a certain level, making it more likely for the bond to be called as the stock price rises.

As the Price of the Stock Rises, the Probability That