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4. Why do companies find the issuance of convertible bonds to be an attractive form of...

4. Why do companies find the issuance of convertible bonds to be an attractive form of financing? Explain the rationale for this statement.
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Since issuance of convertible bonds are a simple wellspring of financing and can furnish the companies with a prompt amount of money with an nominal rate of interest in comparison to what is being charged on other long term debt financing alternatives.

It likewise give Company an alternative to get the bonds converted into common shares and thereby reducing their chances of paying up the bond in not so distant future in this manner keeping up their liquidity and improving the working capital Management .

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