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fatman fatman
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6 years ago
Why are convertible bonds attractive to investors?
Textbook 
Business Essentials, Canadian Edition

Business Essentials, Canadian Edition


Edition: 8th
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wrote...
6 years ago
They are attractive because they give the owner the option to convert the bond to common shares at a certain price (known as the strike price). If the price of the company's stock is above the strike price, the bondholder makes a profit (in addition to the interest the bondholder collected along the way).
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