A convertible preferred stock is similar to a convertible bond except:
A)the conversion ratio is fixed (given).
B)the conversion price is fixed (given).
C)the time to maturity is infinite.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Convertible preferred stock typically does not have a maturity date, making its time to maturity effectively infinite, unlike convertible bonds which have a fixed maturity date.

A Convertible Preferred Stock Is Similar to a Convertible Bond