SIE Exam Practice Question 936

Question: 936

Which of the following is correct regarding convertible bonds?

A. They typically offer lower coupon rates than non-convertible bonds issued for the same term by the same issuer.

B. They typically offer higher coupon rates than non-convertible bonds issued for the same term by the same issuer.

C. They typically offer the same coupon rates as non-convertible bonds issued for the same term by the same issuer.

D. They are zero-coupon bonds issued at a discount to par.