Liquid yield option notes or LYONs have which of the following characteristics?
I. Convertibility at a fixed conversion ratio.
II. High coupon rates.
III. A put feature that guarantees the right to redeem the bonds at a prespecified price.
IV. Convertibility at a fixed conversion price.

A) I and IV only.
B) I and III only.
C) II and IV only.
D) II and III only

Question

Liquid yield option notes or LYONs have which of the following characteristics?
I.	Convertibility at a fixed conversion ratio.
II.	High coupon rates.
III.	A put feature that guarantees the right to redeem the bonds at a prespecified price.
IV.	Convertibility at a fixed conversion price.

A) I and IV only.
B) I and III only.
C) II and IV only.
D) II and III only

Quizplus · Accepted Answer

The Answer is B

Liquid Yield Option Notes or LYONs Have Which of the Following