On average, convertible bonds have call premiums of less than 10% at time of issue.

Name: On average, convertible bonds have call premiums of less than 10% at time of issue.
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Quizplus · Accepted Answer

This statement is true, as convertible bonds typically have a lower call premium compared to traditional bonds due to their conversion feature. The call premium is the amount above par value that an issuer must pay to call back or redeem a bond before its maturity date, and for convertibles, it is usually less than 10%.

On Average, Convertible Bonds Have Call Premiums of Less Than