Series 65: Exercise

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