The conversion feature of a bond permits:
A) the company to convert a high coupon rate bond into a lower rate bond.
B) the bondholder to exchange the bonds with a company's common stock.
C) the bondholder to redeem a small percentage of the bond every year.
D) the company to convert the face value of the bond to the market price of the bond.
E) the company to trade outstanding bonds with a term deposit in a financial institution.
Correct Answer:
Verified
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