Series 7 - General Securities Representative Exam

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Which of the following is true of convertible bonds?

A convertible bond can be exchanged for a predetermined amount of preferred stock
A
A convertible bond is a variable income debt security.
B
A convertible bond can be converted into a variable number of common stock shares
C
A convertible bond is a fixed-income debt security that yields interest payments
D

Explanations

A convertible bond is a fixed-income debt security that yields interest payments,and can also be converted into a set number of common stock shares