A. relatively lower
B. relatively higher
C. relatively zero
D. relatively discounted
✅ The correct answer is option A.
As compared to non-convertible bonds, yield on convertible bond is relatively lower. At face value, the interest rate on a convertible bond is actually lower than that found on nonconvertible bonds.
As compared to non-convertible bonds, yield on convertible bond is relatively lower. At face value, the interest rate on a convertible bond is actually lower than that found on nonconvertible bonds.