Question
What are advantages of convertible bonds?
Interesting Question? 
(1) 
(6)
(1) (6)
Answers (1)
20th Nov 2009 by Daniel Cross, ChFC
A convertible bond is a type of hybrid security. Although the interest rates are lower than those found on comparable corporate bonds, its real value lies in the equity conversion option. The ability to change from bondholder to stock holder at a set price allows the investor to profit from a growing company and still has downside protection in the form of interest payments.
A convertible bond is a type of hybrid security. Although the interest rates are lower than those found on comparable corporate bonds, its real value lies in the equity conversion option. The ability to change from bondholder to stock holder at a set price allows the investor to profit from a growing company and still has downside protection in the form of interest payments.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
19th Nov 2009 In Bonds
1 Answers | 62 Views
Subjects: convertible bonds,