Convertible bonds offer minimal risk of loss to the investor due to their floor value.

Name: Convertible bonds offer minimal risk of loss to the investor due to their floor value.
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Question

Quizplus · Accepted Answer

Convertible bonds may offer some protection in a down market, but they still carry market risk as the value of the bond is affected by both interest rates and the stock price of the underlying company. The floor value of the bond is not a guarantee against loss.

Convertible Bonds Offer Minimal Risk of Loss to the Investor