Which of the following is a good reason to invest in convertible bonds?
A) They tend to be issued by stable, low- risk companies.
B) They offer predictable income and a chance to profit from an increase in the share price.
C) They often have higher than normal coupon rates.
D) They offer protection against rising interest rates.

Question

Quizplus · Accepted Answer

Convertible bonds provide regular interest payments and the potential to convert into equity, allowing investors to benefit from a rise in the company's stock price.

Which of the Following Is a Good Reason to Invest