Why would a bondholder of a convertible bond exchange

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Savings represent money people earn but don't spend currently. They generally invest that money by putting it in bank accounts or using it to buy stocks and bonds. Hence savings equals investment, a fundamental economic principle of an advanced economy. Critique this statement ?

Why would a bondholder of a convertible bond exchange its relatively certain stream of cash payments for stock which has no assurance of dividends?

Reference no: EM131992411

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