Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

You client Jonas owns an XYZ corp convertible bond with a conversion price of $60. XYZ is currently trading at $65 per share. XYZ corp is calling the bond in at a premium - at a price of 110.0 The Bond is trading in the market at 112. What should you advise your client to do?

Continue to hold the bond until maturity

A

Sell the bond in the market

B

Allow the bond to be called

C

Convert it to shares of common stock

D