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

Question

Quizplus · Accepted Answer

A convertible debenture can sell for more than its conversion value if investors are willing to pay a premium for the potential to convert the debt into equity. It can also sell for less than its bond value if market conditions cause the bond's yield to increase, making it less attractive to investors.

A Convertible Debenture Can Never Sell for More Than Its