Which of the following statements is correct?
A) A convertible bond will be priced less than a similar callable bond.
B) A convertible bond will be priced more than a similar callable bond.
C) Similar callable and convertible bonds will have the same price.
D) Warrants are always priced more than convertible bonds.

Question

Quizplus · Accepted Answer

A convertible bond typically has a higher price than a similar callable bond because it offers the additional option to convert into equity, which adds value to the bond.

Which of the Following Statements Is Correct