What Are the Benefits of Convertible Bonds?
savings bonds image by judwick from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/a06/15/ke/benefits-convertible-bonds_-1.1-800X800.jpg’); }); Convertible bonds have benefits and downsides. Convertible bonds are company-issued bonds that act as a hybrid between a stock and a bond. The bond can be sold either at an agreed-upon stock price, cash of equal value or be held for the compounding of interest. This type of investment has multiple benefits and downsides. Some downsides include a high conversion price, stock decline leading to convertible bond decline and a large degree of control in the hands of the corporation. That said, depending on your investment situation, convertible bonds may be the right decision for you. Interest Convertible bonds typically are sold to an investor with a conversion rate at a specific percentage above the current market price of the stock. To reward you for this bond pur
