A corporate bond that can be exchanged for a fixed number of shares of stock is called a
A)callable bond.
B)debenture.
C)convertible bond.
D)warrant.

Question

Quizplus · Accepted Answer

A convertible bond is a type of corporate bond that can be converted into a fixed number of shares of stock. This gives the bondholder the option to convert their bond into stock if the stock price rises, potentially resulting in a higher return on their investment. Callable bonds can be redeemed by the issuer before maturity, debentures are unsecured bonds, and warrants give the holder the right to purchase stock at a certain price but are not themselves bonds.

A Corporate Bond That Can Be Exchanged for a Fixed