Convertible bonds:

Name: Convertible bonds:
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Convertible bonds:

Quizplus · Accepted Answer

Convertible bonds provide potential benefits to both the issuer and the investor. The issuer can issue the bonds at a lower interest rate than non-convertible bonds because investors are willing to accept a lower yield for the option to convert the bonds into equity. The investor has the option to convert the bonds into equity, which can provide potential capital gains if the stock price increases.

Convertible Bonds