How many options does a callable,convertible bond contain?
A)0
B)1
C)2
D)3

Name: How many options does a callable,convertible bond contain? A)0 B)1 C)2 D)3
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Question

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There are two options: (a)the issuer holds a call on the bond,and (b)the buyer has the right to convert the bond into equity.One may extend the idea and say that there is an additional option-the option to default held by the issuer of the convertible.If such a response is provided,then the correct answer would be 3 options,i.e. ,answer (d).

How Many Options Does a Callable,convertible Bond Contain