Convertible bonds have all of the following features except:
A)an ability to protect a short position on the stock into which they are convertible
B)permissibility for use as collateral
C)a normally higher yield than non-convertible bonds of the same issuer
D)fluctuations influenced by changes in the price of the underlying common stock

Question

Quizplus · Accepted Answer

a normally higher yield than non-convertible bonds of the same issuer. Remember that the question says "except" for this feature. Convertible bonds normally do NOT have a higher yield than non-convertible bonds of the same issuer. Convertibles usually have a lower yield than non-convertible sisters.

Convertible Bonds Have All of the Following Features Except