SIE: Exercise

Exercise

Answer the following questions.

1. 1. A convertible bond has a [higher/lower] level of volatility than the underlying common stock.
2. 2. Convertible bondholders have a [higher/lower] claim on a company’s assets than non-convertible debtholders.
3. 3. When an investor profits from differences in prices across markets, this is known as _____.
4. 4. Bonds with sinking fund provisions are redeemed at [par value/a premium].
5. 5. A cur