A convertible bond is not issued for which of the following reasons?

Question

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Convertible bonds are issued as a form of long-term financing, but companies do accept the potential for dilution after conversion. The purpose of issuing convertible bonds is to make the financing attractive to investors by offering the potential for conversion into equity, often at a price higher than the current market price, and to secure financing at a lower cost compared to issuing common stock directly. The statement that a company does not want to face dilution after conversion contradicts the inherent acceptance of potential dilution that comes with issuing convertible bonds.

A Convertible Bond Is Not Issued for Which of the Following