Examveda
Examveda

Coupon rate of convertible bond is

A. higher

B. lower

C. variable

D. stable

Answer: Option B

Solution(By Examveda Team)

Coupon rate of convertible bond is lower. Investors will generally accept a lower coupon rate on a convertible bond, compared with the coupon rate on an otherwise identical regular bond, because of its conversion feature.

This Question Belongs to Commerce >> Financial Management

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