Bonds that may be exchanged for common stock when the stock reaches a specified price are called

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Convertible bonds are the type of bonds that can be converted into a predetermined amount of the company's equity or common stock at certain times during the bond's life, usually at the discretion of the bondholder. This feature provides the bondholder with the potential to participate in the equity appreciation of the issuing company.

Bonds That May Be Exchanged for Common Stock When the Stock