UPSC Civil Services 2022 Prelims General Studies Paper I

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Question : 65 of 100
 
Marks: +1, -0
With reference to Convertible Bonds, consider the following statements:
1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Which of the statements given above is/are correct?
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