Convertible bonds will retain their value as bonds even if stock prices are falling.

Name: Convertible bonds will retain their value as bonds even if stock prices are falling.
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Question

Quizplus · Accepted Answer

Convertible bonds have a dual nature, acting as both bonds and potential stocks. If stock prices fall, they can still retain their value based on their bond characteristics, such as fixed interest payments and principal repayment at maturity, independent of the stock performance.

Convertible Bonds Will Retain Their Value as Bonds Even If