Problem:
The price of a convertible bond is often 1 - greater than its value as stock, 2 - less than its value as stock, 3 - greater than its value as debt or 4 - less than its value as debt.
a) 1 and 3
b) 1 and 4
c) 2 and 3
d) 2 and 4
Note: Provide support for your rationale.