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Compare Convertible & Non-convertible Debentures.
Convertible debentures are the debentures which can be converted into equity shares of the company. They provide an option to their holders to convert debentures into equity shares during a specified period at a particular price. The rate of interest is lesser than the non convertible debentures. From investors’ point of view, convertible debentures are an ideal combination of high yield, low risk and potential capital appreciation.
Non convertible debentures are the debentures which cannot be converted. They remain as debt capital instruments.
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