Future AI Inc. is a newly formed technology firm. It has recently done its IPO. The firm specializes in artificial intelligence products and services. Given that the world is moving fast towards adopting artificial intelligence, the firm has potential for achieving higher growth in the future. Grown Up Ltd is a utility firm that provides energy. The firm is mature and relies on past investments. The firm is getting steady cash flows from its business. Due to the outbreak of COVID-19 there is a higher demand for the products for both firms and hence both firms need to increase their investments to accommodate the demand in the market. Both firms are thinking about issuing bonds to raise the capital since issuing bonds seems to be straightforward given the current scenario. 

Do you think the choice between coupon bonds and convertible bonds will vary for Future AI Inc. and Grown Up Ltd.?

Answer rating: 100% (QA)

Bonds are a means to raise funds for a company by offering interest to the bondholder at prede... View the full answer