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All of the Following Statements Regarding Convertible Bonds Are True

Question 159

Multiple Choice

All of the following statements regarding convertible bonds are true except:


A) Holders of convertible bonds can generally decide whether to convert to stock.
B) Holders of convertible bonds have the potential to profit from increases in stock price.
C) Holders of convertible bonds can choose when to convert to stock.
D) Holders of convertible bonds have the option to not convert and continue receiving bond interest payments and par value at maturity.
E) Holders of convertible bonds can choose how many shares of stock to receive at conversion.

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