Question
EconomyFinancial Markets and InvestmentBonds and Debt InstrumentsMedium (editorial estimate)
Question details
Type:
Statement based
Skill:
Fact recall
Tags:
convertible bonds · Bonds and Debt Instruments
Related topics:
Equity Markets, Shares and Ownership

Classification and difficulty are editorial labels. Explanations are awaiting review.

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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?

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Question 65 · Bonds and Debt Instruments · Economy · UPSC Prelims 2022 (GS)

Topics and years

2022 · GS · Question 65