An advantage of convertible bonds is
A) investors get the upside potential of a bond.
B) investors get the upside potential of a stock.
C) issuing firm can get a lower rate of interest on its debt.
D) a and b.
E) b and c.

Question

Quizplus · Accepted Answer

Convertible bonds offer investors the potential upside of converting to stock if the stock price increases, and they allow the issuing firm to offer a lower interest rate due to the conversion feature.

An Advantage of Convertible Bonds Is