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Define a convertible debt and discuss its significance in financing instead of equity. Provide examples.

Define a convertible debt and discuss its significance in financing instead of equity. Provide examples.

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Convertible debt means the debt can be converted into Equity after specific period of time. For example, Convertible Bonds Payable, where convertible bonds payable can be converted into Equity shares whenever required. These securities have more priority and more value in financing instead of equity.

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