A disadvantage to the investor of a convertible bond is that

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The disadvantage to the investor of a convertible bond is that the share price may never rise above the conversion price, reducing the potential for equity upside. The other options are not necessarily disadvantages to the investor. If interest rates rise, the pure bond value (floor price) will rise, which could be advantageous for the investor. The interest rate on convertibles is generally lower than the coupon rate on straight bonds of similar risk, not necessarily a disadvantage.

A Disadvantage to the Investor of a Convertible Bond Is