One of the advantages of a convertible is "downside protection." This means that the:
A) convertible bond's price will not fall below the bond's investment value.
B) price of the bond will not decline below its par value.
C) bond price will be fairly stable irrespective of changes in the interest rate.
D) price of the bond will always be at least 90 per cent of its market price.
Correct Answer:
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