A convertible bond is one that A) can be converted into ...

[Kikoku]

A convertible bond is one that
 
  A)
 
  can be converted into another bond if the issuer goes into bankruptcy.
  B)
 
  can be exchanged for a commodity such as silver or gold.
  C)
 
  is open-topped, meaning its redemption value can increase over time.
  D)
 
  can be converted into a specific number of shares of common stock of the issuer.

Question 2

A company with a bond rating of BBB is more likely to have which of the following qualities
  compared to a company with a bond rating of B?
 
  A) greater reliance on equity financing B) high variability in past earnings
  C) small firm size D) little use of subordinated debt

[Sassygurl126]

Answer to Question 1

D

Answer to Question 2

D