A(n) ____ is a fixed-income security issued by a company with a call option on its common stock.
A) warrant
B) convertible debenture
C) lease
D) extendible note

Question

Quizplus · Accepted Answer

A convertible debenture is a type of bond that can be converted into common stock at the option of the bondholder. This option gives the bondholder the potential for increased returns if the company's stock price rises. Additionally, the debenture may have a call option, which allows the company to redeem the bond early if it chooses to do so.

A(n) ____ Is a Fixed-Income Security Issued by a Company