B错的原因

问题如下：

Is Rhie most likely correct regarding the two benefits of investing in convertible bonds he describes?

选项：

A.No, he is incorrect regarding the change in value.

B.Yes.

C.No, he is incorrect regarding the coupon rate.

解释：

1. A is incorrect because convertible bonds do generally rise in value when the issuer’s common stock price goes up.

2. B is incorrect because convertible bonds generally have lower coupon rates than similarly rated option-free bonds.

3. C is correct. Because bondholders will benefit from share price increases because of the conversion option, they generally accept lower (not higher) coupon rates on convertible bonds than on similarly rated option-free bonds.