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Corporate convertible bondholders typically expect to O have a conversion premium that makes it valuable to exchange the bond for a different bond issue.

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Corporate convertible bondholders typically expect to O have a conversion premium that makes it valuable to exchange the bond for a different bond issue. O have a higher interest rate to compel bondholders to exchange the bonds for shares earlier. O receive a higher interest payment in exchange for the right to sell shares of stock. receive a lower interest payment in exchange for the right to convert the bond for company shares.

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