Options
-
They offer fixed interest and can be converted into equity at a later date
Correct answer
- B
They are less risky than equity shares
- C
They do not carry any interest payments
- 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.
Test yourself for real
Take a full NISM Series XXI-A mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.