Convertible bonds are issued at a higher interest rate because they are riskier to the corporation issuing them.

Name: Convertible bonds are issued at a higher interest rate because they are riskier to the corporation issuing them.
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Convertible bonds typically offer a lower interest rate compared to regular bonds because they give the holder the option to convert the bonds into a predetermined number of shares of the issuing company, potentially providing additional value.

Convertible Bonds Are Issued at a Higher Interest Rate Because