Which of the following is not a characteristic of convertible bond issues?
A) The average size of the offering is small.
B) A 15-20% conversion premium at time of issue is common.
C) Large companies with billions of dollars in sales and assets are the primary issuers.
D) Primary issuers tend to have less than AAA credit ratings.

Question

Quizplus · Accepted Answer

The statement "Large companies with billions of dollars in sales and assets are the primary issuers" is not true for convertible bond issues. While large companies may issue convertible bonds, smaller companies may also issue them. The other options are characteristics of convertible bond issues.

Which of the Following Is Not a Characteristic of Convertible