An advantage of convertible bonds is
A) investors get the upside potential of a bond.
B) investors get the upside potential of a stock.
C) issuing firms can get a lower rate of interest on its debt.
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

Convertible bonds offer investors the upside potential of stocks, as they can be converted into a predetermined number of shares, and they allow issuing firms to pay lower interest rates compared to traditional bonds because of the added value of the conversion option.

An Advantage of Convertible Bonds Is