If a company issues both a straight bond and a convertible bond simultaneously, at par, then the straight bond will have a higher interest rate.

Name: If a company issues both a straight bond and a convertible bond simultaneously, at par, then the straight bond will have a higher interest rate.
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Quizplus · Accepted Answer

This is because the straight bond does not have the option to be converted into equity, so investors require a higher interest rate to compensate for the lack of potential upside.

If a Company Issues Both a Straight Bond and a Convertible