Convertible bonds are attractive to bondholders because

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Convertible bonds are attractive to bondholders primarily because they can be converted into stock at the bondholder's option. This feature allows bondholders to participate in the potential upside of the issuing company's stock price while also enjoying the fixed income and relative safety of a bond. If the stock price appreciates significantly, bondholders can convert their bonds into shares of stock and potentially realize a higher return than if they had held onto the bond until maturity. This conversion feature adds value to the bond, making it an attractive investment for those looking for a combination of income, capital preservation, and the potential for capital appreciation.

Convertible Bonds Are Attractive to Bondholders Because