Which one of the following statements concerning convertible bonds is false?
A) A convertible bond is similar to a bond with a call option.
B) A convertible bond should always be worth less than a comparable straight bond.
C) New shares of stock are issued when a convertible bond is converted.
D) A convertible bond can be redeemed just like a straight bond at maturity.
E) A convertible bond can be described as having upside potential with downside protection.
Correct Answer:
Verified
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