Benefits to Investors :

• It has advantage of both equity and debt.

• It gives the investor much of the upside of investment in equity, and the debt portion protects the downside.

• Assured return on bond in the form of fixed coupon rate payments.

• Ability to take advantage of price appreciation in the stock by means of warrants attached to the bonds, which are activated when price of a stock reaches a certain point.

• Significant Yield to maturity (YTM) is guaranteed at maturity.

• Lower tax liability as compared to pure debt instruments due to lower coupon rate.