Convertible bonds:
A)can't be converted to equity.
B)typically pay a lower interest rate.
C)typically pay a higher interest rate.
D)None of the above

Question

Quizplus · Accepted Answer

Convertible bonds can be converted to equity, so option A is incorrect. Typically, convertible bonds pay a lower interest rate than traditional bonds because of the added equity conversion option, making option C also incorrect. Therefore, option B is the correct answer.

Convertible Bonds