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Basic Question 6 of 16
A clause in the indenture of Convex Incorporated's 10-year coupon bonds specifies that they are exchangeable into the common stock of the company at a ratio of 10 shares per $1,000 par value.
B. This clause makes the bonds refundable.
C. This clause makes the bonds convertible.
A. This clause makes the bonds callable.
B. This clause makes the bonds refundable.
C. This clause makes the bonds convertible.
User Contributed Comments 3
| User | Comment |
|---|---|
| woori | by definition |
| robbiecow | and I thought it was by magic! |
| khalifa92 | hahaha, you're so funny you should be a comedian instead. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe fixed-income securities with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.