Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Which statement is not correct?
- A convertible bond is like a bond with a call option.
- The amount of DPS has negative impact on favorable income differential per share of a convertible bond.
- The value of a convertible bond cannot be less than its straight value.
- Exchangeable bonds give the bondholder the right to exchange the bonds for the common stock of the issuer of the bond.
- The conversion value of a convertible bond is directly related to its market price of common stock.
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