The conversion feature of a bond is a feature that is included in almost all corporate bond issues that gives the issuer the opportunity to repurchase bonds at a stated price prior to maturity.

Question

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The conversion feature of a bond refers to the ability of the bondholder to convert their bond into shares of the issuer's common stock. It is not related to the issuer repurchasing bonds prior to maturity.

The Conversion Feature of a Bond Is a Feature That