n NISM Certifications
XXI NISM Series XXI-A
Medium

The main advantage of convertible bonds is:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. They offer fixed interest and can be converted into equity at a later date

    Correct answer

  2. B

    They are less risky than equity shares

  3. C

    They do not carry any interest payments

  4. D

    They are not affected by market fluctuations

Why this is the answer

Convertible bonds provide income via interest and the option to convert into shares.

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