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futurenurse15 futurenurse15
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2 years ago
Which of the following is most likely to happen with a convertible bond when the market price of the stock exceeds the conversion price?  The stock does not pay a dividend.

▸ The bondholders will immediately convert their bonds to stock.

▸ The issuing company will call the bonds and the bondholders will redeem them for the call price.

▸ The issuing company will call the bonds and bondholders will convert them to common shares.

▸ Both the issuing company and the bondholders will wait for the bonds to reach their maturity date.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
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tswinson3tswinson3
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2 years ago
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