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 firms 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 (B) and allow issuing firms to offer a lower interest rate due to the conversion feature (C).

An Advantage of Convertible Bonds Is