The question asks which is true for preferred stocks if between two different choices that are very similar one is convertible and one is not. However, the answer options have 2 correct choices:
The non-convertible security will likely trade at a lower market price
The convertible security will likely trade at a lower yield
Both answers imply the same fact that convertibles will have a higher price/lower yield than non convertibles. Or the vice versa that non-convertibles have a lower price/higher yield. Or am I missing something?