Which of the following statements is true?
a. convertible bonds can be converted into...
Which of the following statements is true?
a. convertible bonds can be converted into shares of common stock at some predetermined ratio at the discretion of the bondholder.
b. to secure the conversion option on a bond, bondholders would be willing to pay a premium.
c. all of these are true.
d. typically, the conversion ratio is set so that the firm's stock price must appreciate at least 15 to 20 percent before it is profitable to convert bonds into stock.
Answers: 2
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