What are the benefits of purchasing convertible bonds

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1) What are the benefits of purchasing convertible bonds?

2) Is the YTM on a convertible issue higher or lower than on a comparable non-convertible issue? Why?

3) If you had the choice of putting your money into one convertible issue or purchasing a mutual fund made up of convertible issues, what would you do? Explain?

4) How does the pricing of a convertible bond move in relation to interest rates and the firm's stock price?

Reference no: EM131900073

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