Choice "B" is correct. The interest rate on convertible debt is generally lower than nonconvertible debt because of the value of the conversion feature.
Choice "a" is incorrect. The conversion price is generally greater than the market value of the common stock at the time of issuance.
Choice "c" is incorrect. This is not a typical feature of convertible debt securities.
Choice "d" is incorrect. Convertible debt is not typically subordinate to nonconvertible debt.
