A convertible preferred stock is similar to a convertible bond except:
A) the conversion ratio is fixed (given).
B) the conversion price is fixed (given).
C) the time to maturity is infinite.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Convertible preferred stock typically does not have a maturity date, making its time to maturity effectively infinite, unlike convertible bonds which have a fixed maturity date.

A Convertible Preferred Stock Is Similar to a Convertible Bond