Usually more risky than nonconvertible bonds

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Reference no: EM131508565

1. Would you agree that convertible bonds are less risky than corporate stock but usually more risky than nonconvertible bonds? WHY?

2. How are convertible preferred stocks different from convertible bonds and what advantages do convertible securities offer investors? Include in your discussion the risks associated with these investments.

3. Why may an investor prefer a debenture with a put feature in preference to a bond with a call feature bond will be called?

Reference no: EM131508565

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