Question: Current Attempt in Progress Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming cornversion, will arise

Current Attempt in Progress

Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming cornversion, will arise when the original debt is converted. The other is

that equity capital has issue costs that convertible debt does not.

that many corporations can obtain debt financing at lower rates.

the ease with which convertible debt is sold even if the company has a poor credit rating.

that convertible bonds will always sell at a premium.

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Current Attempt in Progress Corporations issue

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