Convertible bonds are issued at a higher interest rate in order to attract investors.

Name: Convertible bonds are issued at a higher interest rate in order to attract investors.
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Convertible bonds typically offer a lower interest rate compared to regular bonds because they also give the holder the option to convert the bonds into a predetermined number of shares of the issuing company, adding potential value through equity participation.

Convertible Bonds Are Issued at a Higher Interest Rate in Order