What are convertible bonds?

1.Convertible bonds give bondholders the option to convert the bonds into

a. a predetermined amount of cash.

b. a predetermined amount of non-current assets.

c. a predetermined number of common equity shares.

d. a predetermined number of short-term notes.

Would any of the following be factors that would motivate a company to issue convertible bonds?

2. The company wants to increase its equity capital at a later date.

Yes/No?

3. The company finds the conversion feature necessary to make the bonds sufficiently marketable at a reasonable interest rate.

Yes/No?

4. The company wants to penetrate a segment of the capital market that is unwilling or unable to participate in a direct common stock issue.

Yes/No?

5. The company wants to increase its short-term notes at a later date.

Yes/No?

6. The company wants to increase its non-current assets at a later date.

Yes/No?