Bonds issued giving the holder the option of exchanging the bonds for capital stock of the corporation are called

Name: Bonds issued giving the holder the option of exchanging the bonds for capital stock of the corporation are called
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Bonds issued with the option for the holder to exchange them for capital stock of the corporation are called convertible bonds. The conversion feature allows bondholders to receive a potentially higher return on their investment if the stock price increases.

Bonds Issued Giving the Holder the Option of Exchanging the Bonds