Attempts: Average: 13 4. Convertible bonds, warrants, and other exotic bond features Aa Aa E As the name suggests, convertible bonds allow the owner the option to convert the bonds into a fixed number of shares of common stock. Which of the following are most likely to have higher yields? Nonconvertible bonds Convertible bonds O Consider the case of an investor, Nazim: Nazim wants to include putable bonds in his investment portfolio. Nazim is likely to put the bonds when: He expects to use the cash when the bond matures He is in need of cash O Nazim also recently bought bonds with a clause stating that interest will be paid based on the inflation rate. When the inflation rate increases, the interest on the bonds will also increase. Nazim has invested in