Question: Hexcel has a 7 percent coupon rate bond issue outstanding that matures in 2007. The Wall Street Journal reports a bond price of $582.50. These

Hexcel has a 7 percent coupon rate bond issue outstanding that matures in 2007. The Wall Street Journal reports a bond price of $582.50. These bonds are convertible into common stock. Why do you think a company would issue this type of bond?

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