Exercise
Answer the following questions.
1. A convertible bond has a [higher/lower] level of volatility than the underlying common stock.
2. Convertible bondholders have a [higher/lower] claim on a company’s assets than non-convertible debtholders.
3. When an investor profits from differences in prices across markets, this is known as _____.
4. Bonds with sinking fund provisions are redeemed at [par value/a p
