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

Conversion at the option of the issuer is not a normal characteristic of convertible bonds. The option to convert typically belongs to the bondholder.

All of the Following Are Normal Characteristics of a Convertible