unlike the regular bonds this required investors to convert the bonds into equity share at maturity. While they also offer periodic interest, the obligatory conversion often results in a higher interest rate.

Conclusion
Convertible bonds offer investors the potential for income and equity with in a single investment. There are types of convertible bond available, and investors should consider the pros and cons of each before deciding to invest. While convertible bonds offer reduced the downside risk, they also come with lower yield and the risk of dilution if the bonds are converted in common shares. Overall convertible bond can be useful investment tool for those seeking income and equity participation.