Convertible bonds are attractive to investors because a.they can be converted into stock at a future time. b.the issuing...
Convertible bonds are attractive to investors because
a.they can be converted into stock at a future time.
b.the issuing company cannot retire the bonds before maturity.
c.they usually carry a higher rate of interest than non-convertible bonds.
d.they carry a convertible interest rate that can be increased when the prime rate of interest increases.
Homework Answers
A convertible bond is a type of debt security that provides an investor with a right or an obligation to exchange the bond for a predetermined number of shares in the issuing company at certain times of a bond’s lifetime.
Thus the answer is:-
a.they can be converted into stock at a future time.
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