Why do convertible bonds and bonds with warrants have lowercoupons than similarly rated bonds that do not have these features?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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Why do convertible bonds and bonds with warrants have lower
coupons than similarly rated bonds that do not have these features?

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