CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

The minimum value of a convertible bond is the:

A. the minimum value of the conversion value and straight value of the bond.
B. the bond value + market conversion premium.
C. the maximum value of the conversion value and straight value of the bond.
Correct Answer: C

It is a floor value. The floor is moving because the straight value is not fixed.

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