Natsuko’s portfolio contains a number of convertible bonds. She is con

QUESTION

Natsuko’s portfolio contains a number of convertible bonds. She is considering her options for maximizing returns from this investment. Where will Natsuko have the best chance of finding information that will guide her decision?

A) the issuer’s callable date for the bonds
B) the Dow
C) the S&P 500
D) the Wilshire 5000 index
E) the NASDAQ Composite index

ANSWER

Answer: D
Explanation: D) Natsuko has the option of converting her bonds into shares of stock of the issuing corporation. Tracking the stock’s price will help guide her decision. The Wilshire 5000 index tracks 6,500 stocks and is considered the “total stock market index.” Natsuko will have the best chance of finding various company stock prices on this index.