Which of the following is an advantage of convertible bonds?

A. Investors can convert the bonds into higher coupon rate bonds.
B. Investors can choose to hold the company's bonds or convert the bonds into its common stock. 
C. Investors are paid a penalty on the conversion of the bonds.
D. Investors are redeemed for the difference between the face value and the market price on redemption of the bonds.
E. Investors can claim interest for the remaining life of the bonds on the bonds' early conversion.


Answer: B

Business

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