A convertible bond is one where
A)the issuer can convert from a fixed interest rate to a floating one.
B)the issuer can convert it from long-term to short-term.
C)the issuer can retire the bond before its specified due date.
D)the holder can convert the bond into common stock at a future time.

Question

Quizplus · Accepted Answer

A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuer's common stock at a future time. This gives the bondholder the option to participate in any potential stock price appreciation while also receiving fixed interest payments until the conversion date.

A Convertible Bond Is One Where