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Author Question: If a company's stock price is expected to increase substantially over the next few years, which of ... (Read 72 times)

Collmarie

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Question 1

Convertible bonds tend to offer a(n) ________ return than nonconvertible bonds.


◦ higher
◦ lower
◦ similar
◦ indexed

Question 2

If a company's stock price is expected to increase substantially over the next few years, which of the following may entice potential bondholders to accept a lower coupon rate on the company's bonds?


◦ Par value
◦ Call feature
◦ Convertibility
◦ Reserve feature


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Marked as best answer by Collmarie on Apr 14, 2019

Kaytorgator

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Collmarie

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Reply 2 on: Apr 14, 2019
Excellent


xiaomengxian

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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