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Recently, you discovered a convertible, callable bond with a 5 percent semiannual coupon. If you purchase this bond you will have the right to: Force the issuer to repurchase the bond prior to maturity. Convert the bond into equity shares. Defer all taxable income until the bond matures. Convert the bond into a 5 percent perpetuity. Have the principal amount adjusted for inflation.

Respuesta :

Tundexi

Answer:

b. Convert the bond into equity shares.

Explanation:

A convertible callable bond is one that gives the issuer the right to call the bond prior to maturity and the holder the right to convert it into equity shares. Hence as a holder, you will have the right to convert the bond into equity shares.

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