Issuing bonds plus warrants is similar to issuing:
A)Retractable bonds.
B)Convertible bonds.
C)Floating rate bonds.
D)Preferred shares.

Question

Quizplus · Accepted Answer

Issuing bonds plus warrants allows the bondholders to convert their bonds into equity shares using the warrants. Similarly, convertible bonds also allow the bondholders to convert their bonds into equity shares at a predetermined rate. Therefore, issuing bonds plus warrants is more similar to issuing convertible bonds.

Issuing Bonds Plus Warrants Is Similar to Issuing