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Samantha Owns a Reverse Convertible Bond

Question 58

Multiple Choice

Samantha owns a reverse convertible bond. At maturity, the principal amount will be repaid in:


A) shares of stock.
B) cash while the interest is paid in shares of stock.
C) the form of a newly issued bond.
D) either shares of stock or a newly issued bond.
E) either cash or shares of stock.

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