The major attraction of convertible bonds is
A) the option to convert subordinated debentures into senior securities.
B) the option to convert the bond into shares of the company's stock.
C) the option to convert the bonds into longer term securities when they mature.
D) the absence of a call provision allows the value of the bonds to increase at the same rate as the company's stock while the owner still collects interest.

Question

Quizplus · Accepted Answer

The major attraction of convertible bonds is the option to convert the bond into shares of the company's stock, allowing investors to potentially benefit from increases in the company's stock price while still receiving interest payments from the bond.

The Major Attraction of Convertible Bonds Is