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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Convertible secured loan notes followup
Investors find convertibles attractive because they will get the benefit of increases in the share price. Therefore they will accept lower interest payments each year. Therefore it costs the company less in interest.
But what it has to do with equity, as in answer of mcq it is stated that they are less expensive to service because of their equity component.?
They are convertibles – convertibles can be exchanged for shares on maturity.
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