All of the following are normal characteristics of a convertible bond, except
A) conversion at the option of the issuer.
B) conversion into a fixed number of shares of common stock.
C) a conversion price initially above the market price of the common stock.
D) an interest rate lower than that on straight debentures.
E) subordination.

Question

Quizplus · Accepted Answer

Convertible bonds are typically convertible at the option of the bondholder, not the issuer. All other characteristics listed are normal for convertible bonds.

All of the Following Are Normal Characteristics of a Convertible