Convertible bonds will normally have lower promised yields than straight bonds of similar terms and quality.

Name: Convertible bonds will normally have lower promised yields than straight bonds of similar terms and quality.
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Convertible bonds offer investors the option to convert the bond into a set number of shares of the issuing company's stock, which is seen as an added benefit. Therefore, the lower promised yield compensates for this potential upside.

Convertible Bonds Will Normally Have Lower Promised Yields Than Straight