ABC Company's previous bond offerings were sold without a convertibility feature. The company recently issued...
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ABC Company's previous bond offerings were sold without a convertibility feature. The company recently issued bonds that allow for their conversion to common shares, under certain conditions, for the first time in its history. One likely effect of this issue is that ABC will be unable for pay off its bonds when they mature. ABC s bonds will now carry a lower interest rate. ABC s bonds will now carry a higher interest rate. Only A and B are possible. 
ABC Company's previous bond offerings were sold without a convertibility feature. The company recently issued bonds that allow for their conversion to common shares, under certain conditions, for the first time in its history. One likely effect of this issue is that
ABC will be unable for pay off its bonds when they mature.
ABC s bonds will now carry a lower interest rate.
ABC s bonds will now carry a higher interest rate.
Only A and B are possible.
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