CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A clause in the indenture of Convex Incorporated's 10-year coupon bonds specifies that they are exchangeable for the common stock of the company at a ratio of 10 shares per $1,000 par value.

A. This clause makes the bonds callable.
B. This clause makes the bonds refundable.
C. This clause makes the bonds convertible.
Correct Answer: C

A convertible bond can be exchanged for another asset per terms of the bond indenture.

User Contributed Comments 3

User Comment
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