When a convertible bond is called,
1. interest ceases to accrue
2. the bondholder receives the principal
3. the bondholder generally converts the bond
4. dividends are paid to the bondholder
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:
Verified
Q28: When interest rates rise, the price of
Q29: Convertible preferred stock
1. pays a fixed dividend
2.
Q30: Buying a bond with an option to
Q31: Convertible bonds have a call feature to
A)protect
Q32: A put bond permits the investor to
Q34: A put bond permits
A)the investor to convert
Q35: As the price of common stock rises,
A)the
Q36: The price of a convertible bond is
Q37: The value of a convertible bond as
Q38: Put bonds tend to have lower coupons
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