Holders of __________ bonds can exchange their bonds into shares of the company's common stock at a predetermined price.

Question

Quizplus · Accepted Answer

Convertible bonds allow holders to exchange their bonds into a predetermined number of shares of the company's common stock at a predetermined price. Callable bonds give the issuer the right to redeem the bonds prior to maturity, whereas investment grade and junk bonds refer to the credit rating of the bond issuer.

Holders of __________ Bonds Can Exchange Their Bonds into Shares