One advantage to the corporation in selling a convertible bond is

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One advantage to the corporation in selling a convertible bond is that the interest rate on a convertible is lower than a straight debt issue of equal risk. This is because investors are willing to accept a lower interest rate in exchange for the option to convert the bond into common stock in the future. Option B is not necessarily an advantage to the corporation, as they may want the bond to be converted into common stock in order to raise more equity capital. Option C may be an advantage to the bondholders, but it does not necessarily benefit the corporation that sold the bond.

One Advantage to the Corporation in Selling a Convertible Bond