老师好，可否再解释一下这道题

问题如下：

Which of the following statements best describes the implications of removing the conversion feature from the bond?

选项：

A.

Removal of the conversion feature would likely result in a higher coupon.

B.

Removal of the conversion feature would likely increase the bond price.

C.

Removal of the conversion feature would likely reduce credit risk.

解释：

Because the conversion provision is valuable to bondholders, the convertible bond price is higher than the price of an otherwise similar bond without the conversion provision. Similarly, the yield on a convertible bond is lower than the yield on an otherwise similar non-convertible bond. Thus, should the Digistrype team elect to remove the conversion feature, it would likely have to increase the bond’s coupon rate in order to attract investors.

B is incorrect because removal of the conversion feature would decrease, not increase, the bond price.

C is incorrect because removal of the conversion feature would not change the credit risk.