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What is a convertible bond? Is a convertible more or less attractive to a bond holder than a nonconvertable bond?
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- can a convertible bond ever result in the recognition of a gain in the income statement?Two bonds, bond A and bond B, are identical except that bond A is convertible and bond B is not. Which bond will have the higher price? WhyWhy is a call provision advantageous to a bond issuer? When would the issuer be likely toinitiate a refunding call?
