convertible debenture can never sell for more than its conversion value or less than its bond value.

Name: convertible debenture can never sell for more than its conversion value or less than its bond value.
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Question

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A convertible debenture can sell for more than its conversion value if the market anticipates an increase in the issuer's stock price. It can also sell for less than its bond value if the market perceives a higher risk associated with the issuer's creditworthiness.

Convertible Debenture Can Never Sell for More Than Its Conversion