Which Three of the Following Are Advantages of Convertible Bonds

question 22

Multiple Choice

Which three of the following are advantages of convertible bonds to the investor?

• A) The annual coupon is usually higher than the dividend yield.
• B) They can wait and see how share prices move before investing in equity.
• C) All tax is paid at corporation tax rates by the company.
• D) There is greater security for their principal.