Which is true of convertible bonds?
A)They pay both interest and dividends simultaneously.
B)They pay no interest payments.
C)They can be repurchased by the issuer before the maturity date.
D)Not all convertible bonds are quality investments.
E)They are secured by the FDIC.

Question

Quizplus · Accepted Answer

Convertible bonds can vary in quality, and not all are considered good investments. They offer the option to convert into a predetermined number of shares of the issuing company's stock, but this does not guarantee their quality as an investment.

Which Is True of Convertible Bonds