A straight bond value is the ________.
A) minimum price at which a convertible bond would be traded
B) optimum price at which a callable bond would be traded
C) maximum price at which a callable bond would be traded
D) average price at which a convertible bond would be traded

Question

Quizplus · Accepted Answer

The straight bond value refers to the value of the bond without considering any embedded options such as convertibility into stock or callability. It represents the minimum price at which a convertible bond would trade because it is the value of the bond based purely on its interest payments and principal repayment, without the added value of conversion options.

A Straight Bond Value Is the ________