One advantage to the corporation in selling a convertible bond is:

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Selling a convertible bond provides the advantage of a lower interest rate compared to a straight debt issue of equal risk, which is beneficial for the corporation. Option B is not an advantage as the purpose of selling a convertible bond is to create the possibility of conversion into common stock, and if it does not happen, it reduces the potential benefits for the bondholders. Option C is also not an advantage as if interest rates fall, the corporation will likely have to pay a higher cost to refund the bond.

One Advantage to the Corporation in Selling a Convertible Bond