A convertible bond is often utilized

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A convertible bond can be used as a sweetener when selling debt, as it adds the potential for further return through conversion into equity. It can also be used to sell common at prices higher than those prevailing when funds are needed, as the conversion feature allows investors to benefit from future potential upside in the company's stock. And it may also be utilized when there is no demand for straight debt, as investors may be more willing to invest in a convertible bond that offers the potential for equity conversion.

A Convertible Bond Is Often Utilized