Cconvertable bonds are:1. Options attached to bonds that give the bond holder the right to purchase stock at a preset price without giving up the bond.2. Bonds in which the issue matures (Converts) a little each year.3. Bonds colateralized with certain types of automobiles4. Bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.A. Only 1B. 1 & 2C. 1, 2, & 3D. Only 4E. 1 & 3

Question
Asked Nov 1, 2019

Cconvertable bonds are:

1. Options attached to bonds that give the bond holder the right to purchase stock at a preset price without giving up the bond.

2. Bonds in which the issue matures (Converts) a little each year.

3. Bonds colateralized with certain types of automobiles

4. Bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.

A. Only 1

B. 1 & 2

C. 1, 2, & 3

D. Only 4

E. 1 & 3

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Step 1

The appropriate option is (d).

The bonds that allow the bondholders to convert the given number of bonds to the equity shares of relevant ...

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