Concerning convertible bonds,which of the following statements is not correct?
A) With regard to security,most convertible bonds are secured by ordinary equity (i.e.,they are collateral trust bonds) .
B) For most convertible bonds,the issuing firm can,under certain circumstances,effectively force bondholders to convert to ordinary equity.
C) When a convertible bond is called,the owner has the option of receiving cash or equity for the bond.
D) All of the above are incorrect.
E) All of the above are correct.
Correct Answer:
Verified
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