When a corporation issues a bond that can be exchanged for common shares at a later date,the company has issued which type of bonds?

Question

Quizplus · Accepted Answer

Convertible bonds can be exchanged for a predetermined number of common shares at a later date. This option provides the bondholder with the potential to benefit from an increase in the company's stock price while still receiving interest payments in the interim.

When a Corporation Issues a Bond That Can Be Exchanged