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Concerning Convertible Bonds,which of the Following Statements Is Not Correct

Question 4

Multiple Choice

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.

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