All of the Following Are Common Reasons for a Company

Multiple Choice

All of the following are common reasons for a company to issue convertible bonds except:

A) The company prefers to issue shares, but is unsure of the present stock market and the timing.
B) A bond that has a favourable component such as a conversion privilege, can carry a lower interest rate than a "straight" bond.
C) The bonds are issued to controlling shareholders so that they can receive interest payments in preference to other shareholders.
D) All of these answers are correct.