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As compared to non-convertible bonds, yield on convertible bond is

As compared to non-convertible bonds, yield on convertible bond is Correct Answer relatively lower

As compared to non-convertible bonds, yield on convertible bond is relatively lower. At face value, the interest rate on a convertible bond is actually lower than that found on nonconvertible bonds.

Related Questions

With reference to Convertible Bonds, consider the following statements: 1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest. 2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices. Which of the statements given above is/are correct?
Value of conversion option to bond holder is $220 and rate of return on non-convertible bond is $350 then rate of return on convertible bond is
Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is
Value of conversion option to bond holder is $740 and rate of return on non-convertible bond is $540 then rate of return on convertible bond is
Rahim's convertible gets gas mileage that is 40% higher than that of Karim's SUV. If Jalil's hatchback gets gas mileage that is 15% higher than of Rahim's convertible, then that of Rahim's convertible, then Jalil's hatchback gets gas mileage that is what percent greater that of Karim's SUV?
Which of the following is/are correct regarding Operation Twist? Simultaneous buying and selling of short term and long term bonds respectively Here the bond price increases and yield rate also increases Here the bond price decreases and yield rate increases Simultaneous buying and selling of long term and short term bonds respectively Select the correct answer using the code
With reference to 'self prospectus', which of the following statements is correct?
(1) It is issued by companies making multiple issues of bonds for raising funds.
(2) It can be filed only by companies issuing nonconvertible debt bonds.
Select the correct answer:
Which one of the following is not correct about English bond? a) Bricks in one layer are laid on header bond and courses above and below are stretcher bond b) Bricks in one layer are laid on stretcher bond and courses above and below are header bond c) Every layer of bricks is laid on header and stretcher bond d) Bricks layer aligned such that vertical joint is continuous
Consider the following statements.  I. Pi-Bond is stronger than the Sigma Bond.  II. Sigma Bond is formed by linear overlapping of atomic orbitals.  III. In the case of Pi-Bond, the extent of overlapping of atomic orbitals is more as compared to the Sigma Bond.  Which among the above is/are NOT correct?
If Taka 4,500 was invested in bonds of a corporation when the price per bond was Tk. 9.00 and Taka 3,000 was invested in bonds of another corporation when the price was Tk. 10.00 per bond, what was the average price of bonds purchased?