Convertible bonds:

Question

Convertible bonds:

Quizplus · Accepted Answer

Convertible bonds have the potential to provide benefits to both the issuer and the investor. The issuer can raise funds at a lower cost compared to equity financing, while the investor gets the option to convert the bond into a predetermined number of shares of the issuer's common stock at a later date. This provides the investor with the opportunity to benefit from any potential increase in the issuer's stock price, while also providing some downside protection in the form of the bond's fixed interest payments.

Convertible Bonds