CFA Practice Question

CFA Practice Question

Which of the following is most likely incorrect?
A. A convertible bond allows the owner to convert the bond to the bond of another firm.
B. A put provision for a bond allows the owner to return the bond for payment to the issuer earlier than maturity.
C. A call provision for a bond allows the issuer to pay off the bond earlier than maturity.
Explanation: A convertible bond usually allows the owner to convert the bond to equity of the issuing firm.

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