Why is the yield on a convertible bond lower than the yield on an otherwise identical bond

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Why is the yield on a convertible bond lower than the yield on an otherwise identical bond without a conversion feature?

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Fundamentals Of Corporate Finance

ISBN: 9780133507676

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 25, 2016 11:08 AM

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Why is the yield on a convertible bond lower than the yield on an otherwise identical bond

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Fundamentals Of Corporate Finance

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