INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-If the value of the underlying stock dropped drastically,the owner of a convertible bond [would still receive $1,000 | would receive the market value of the stock] at maturity.

Question

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If the value of the underlying stock dropped drastically,the owner of a convertible bond [would still receive $1,000 | would receive the market value of the stock] at maturity.

Quizplus · Accepted Answer

Convertible bonds have a face value, typically $1,000, which the bondholder will receive at maturity, regardless of the stock's market value.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which