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Question
Which one of the following statements related to convertible bonds is correct?A. Convertible bonds have a maximum value equal to the bond's intrinsic value.
B. Convertible bonds have limited downside risk with unlimited upside potential.
C. A convertible bond is in-the-money when its call price is greater than its conversion value.
D. Convertible bonds must be converted prior to or on the maturity date.
E. Convertible bonds must be converted once they are called.
Answer
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