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A firm has a reputation of highly volatile earnings what

1. A firm has a reputation of highly volatile earnings. What incentive would an investor have to buy a convertible bond?

2. One year ago a firm issued bonds. Today, the Fed lowered the rates of interest. Why might it have been beneficial for a firm to have included a callable feature in the bonds that it issued last year?

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Finance Basics: A firm has a reputation of highly volatile earnings what

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Finance Basics: A firm has a reputation of highly volatile earnings what

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