A convertible bond is often utilized
A)as a sweetener when selling debt.
B)to sell common stock at prices higher than those prevailing when funds are needed.
C)when there is no demand for straight debt.
D)All of these options

Question

Quizplus · Accepted Answer

A convertible bond can be utilized for all of these purposes. It can be used as a sweetener when selling debt to make it more attractive to investors, as a way to sell common stock at a higher price if the market is favorable, and as an alternative to traditional straight debt when there is no demand for it.

A Convertible Bond Is Often Utilized