Concerning convertible bonds, which of the following statements is not correct?
A) The value of a convertible bond will generally be greater than its straight bond value.
B) The value of a convertible bond will generally be greater than its conversion value.
C) The difference between the conversion value and the straight bond value is the conversion or option premium.
D) The coupon rate on a nonconvertible bond will generally exceed the coupon rate on an otherwise identical convertible bond.
Correct Answer:
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