One of your clients is interested in purchasing a new issue convertible bond. Which of the following statements regarding convertible bonds is not true?
1) Convertible bonds can be converted into a fixed number of shares of the issuing company's common stock.
2) Convertible bonds typically have a lower interest rate compared to non-convertible bonds.
3) Convertible bonds provide the bondholder with the option to convert the bond into shares of the issuing company's common stock.
4) Convertible bonds are not affected by changes in the stock price of the issuing company.