Convertible securities can usually be sold with interest rates ________.
A) lower than those of other nonconvertible securities
B) equal to those of other nonconvertible securities
C) higher than those of other nonconvertible securities
D) that has no relation to those of other nonconvertible securities

Question

Quizplus · Accepted Answer

Convertible securities typically offer lower interest rates than nonconvertible securities because they come with the added value of the conversion feature, which allows investors to convert them into a predetermined number of shares of the issuing company's stock, potentially at a profit.

Convertible Securities Can Usually Be Sold with Interest Rates ________