PERSONAL FINANCE
PERSONAL FINANCE
5th Edition
ISBN: 9781308498706
Author: Kapoor
Publisher: McGraw Hill
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Chapter 15, Problem 15.2PQ3
Summary Introduction

To Determine:

Reason of an investor would purchase convertible bond or high yield bond.

Introduction: Convertible bond is a sort of security, particularly an extraordinary sort of corporate security. It can be traded at the proprietor's choice for a predefined number of offers of the organization's regular stock. This term is one reason why organizations issue bonds.

High yield Bond is a sort of bond. It pays a higher rate of intrigue, yet has a higher danger of default than most different sorts of securities. This term is one reason why organizations issue bonds.

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