A convertible bond is one where

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Convertible bonds are a type of debt instrument that offer the bondholder the option to convert their bond into a predetermined number of shares of the issuing company's common stock at specific times during the bond's life, usually at the discretion of the bondholder. This feature provides the bondholder with the potential for capital appreciation if the company's stock price increases, while also offering the regular interest payments and principal protection of a traditional bond. The conversion feature is a way for companies to potentially lower the interest rate they have to pay on debt, as the convertible feature is valuable to investors.

A Convertible Bond Is One Where