With reference to Convertible Bonds, consider the following statements :1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.Which of the statements given above is/are correct ? - Study24x7
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Ankit Rathi
27 Oct 2023 01:24 PM study24x7 study24x7

With reference to Convertible Bonds, consider the following statements :
1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising cons...

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A

1 only

B

2 only

C

Both 1 and 2

D

Neither 1 nor 2

UPSC
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