Just like any financing security, convertibles have certain advantages and disadvantages. Based on your understanding of using convertibles for financing, identify whether each of the features listed in the following table is an advantage or a disadvantage from an issuer's standpoint: Advantage Disadvantage Feature Convertibles allow investors to buy the company's shares at a certain strike price. Conversion usually takes place when the company's share price increases beyond the strike price Companies can sell common stock at a price higher than the current stock price using convertibles. If a company issues convertible securities because it wants equity capital and the stock price does not eventually increase, investors will not exercise the convertible, and the company will be left with debt. Considering the pros and cons of convertible securities, under which of the following two situations is a company likely to issue convertibles? O When lenders are reluctant to provide financing because they think the funds will be invested in risky projects O When lenders are willing to provide financing at low interest rates because they think the funds will be invested in low-risk projects