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 gives the bondholder the option to convert the bond into a fixed number of shares of the company's stock at a predetermined price. This provides the bondholder with the potential of benefiting from any appreciation in the company's stock price, while still receiving fixed interest payments until the bond is converted.

A Corporate Bond That Can Be Exchanged for a Fixed