Convertible notes have their coupons reset every two or three years to reflect the current interest rate environment and any changes in the firm's credit quality.

Question

Quizplus · Accepted Answer

Convertible notes do not have coupons that are reset every two or three years. Instead, they typically have a fixed interest rate that is paid out to investors until the notes convert into equity or are repaid.

Convertible Notes Have Their Coupons Reset Every Two or Three