Which of the following statements is NOT a feature of convertible notes? ()
A: Convertible notes offer a lower interest rate than straight debt
instruments.
B: Convertible notes are usually made available to ordinary
shareholders.
C: Maturity of convertible notes is usually shorter than straight debt
instruments.
D: Note holders can generally participate in new issues of equity.
A: Convertible notes offer a lower interest rate than straight debt
instruments.
B: Convertible notes are usually made available to ordinary
shareholders.
C: Maturity of convertible notes is usually shorter than straight debt
instruments.
D: Note holders can generally participate in new issues of equity.
举一反三
- How should the convertible loan notes be accounted for? A: As debt B: As debt and equity C: As equity D: As debt until conversion, then as equity
- Which of the following financial instruments will NOT be traded on a money market? A: A Commercial paper B: B Convertible loan notes C: C Treasury bills D: D Certificates of deposit
- Convertible note is essentially a/an... A: equity B: debt C: neither equity or debt D: both equity and debt
- Which of the followings are the advantages of convertible bonds A: lower interest rate B: Self-liquidation C: Increase in debt capacity on conversion D: May be preferred to an issue of shares if shares are undervalued.
- A<br/>bond that can be retired prior to maturity by the issuer is a convertible bond. ( )