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Axon Corporation Decides to Issue Convertible Bonds

Question 67

Multiple Choice

Axon Corporation decides to issue convertible bonds. Why might Axon prefer to issue convertible bonds?


A) It will receive more money from selling convertible bonds.
B) It will not have to make interest payments on convertible bonds.
C) Convertible bonds generally carry a lower interest rate than regular bonds.
D) Issuing convertible bonds generally increases a corporation's sales.
E) Convertible bonds do not have to be paid back if they are not converted.

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