The main reason for investor to use convertible bonds is: 1) to realize his strategic aim to become a new owner or co-owner of the profitable project or enterprise in future; 2) to diversify his risk by investing in pilot venture projects; 3) to make the project more profitable; 4) to receive higher coupon payments.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
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on the subject   Quantitative reasonig for decision making in international business

The main reason for investor to use convertible bonds is:
1) to realize his strategic aim to become a new owner or co-owner of the
profitable project or enterprise in future;
2) to diversify his risk by investing in pilot venture projects;
3) to make the project more profitable;
4) to receive higher coupon payments.
Transcribed Image Text:The main reason for investor to use convertible bonds is: 1) to realize his strategic aim to become a new owner or co-owner of the profitable project or enterprise in future; 2) to diversify his risk by investing in pilot venture projects; 3) to make the project more profitable; 4) to receive higher coupon payments.
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