A conversion feature in a bond has a greater chance of being ...

[LaDunn]

A conversion feature in a bond has a greater chance of being exercised (to the detriment of the bondholder) if market interest rates have risen since the bond was issued.
 
  Indicate whether the statement is true or false

Question 2

The magnification of risk and return introduced through the use of fixed-cost financing, such as debt and preferred stock is called financial leverage.
 
  Indicate whether the statement is true or false

[IAPPLET]

Answer to Question 1

FALSE

Answer to Question 2

TRUE

[LaDunn]

Thanks for the timely response, appreciate it

[miss_1456@hotmail.com]

Gracias!