Investors in convertible bonds have a minimum rate of return on their investment and an option to earn more.

Name: Investors in convertible bonds have a minimum rate of return on their investment and an option to earn more.
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Convertible bonds offer investors a fixed interest payment (minimum rate of return) and the option to convert the bonds into a predetermined number of shares of the issuing company, potentially allowing for a higher return if the company's stock price increases.

Investors in Convertible Bonds Have a Minimum Rate of Return