The Interest Paid by a Convertible Bond Tends

The interest paid by a convertible bond tends
1. to exceed the firm's common stock dividends
2. to be less than the firm's common stock dividends
3. over time to offset the premium paid for the bond
4. to increase the premium paid for the bond

A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4