For convertible corporate bonds,the company pays the bondholder back in dollars when the bond is converted.

Name: For convertible corporate bonds,the company pays the bondholder back in dollars when the bond is converted.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

For convertible corporate bonds, the bondholder has the option to convert their bonds into a predetermined number of shares of the company's common stock. The company does not directly pay the bondholder back in dollars when the bond is converted.

For Convertible Corporate Bonds,the Company Pays the Bondholder Back in Dollars