A 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 fixed-income security issued by a company that also includes a call option on its common stock. The option to convert the debenture into common stock provides the investor with the potential for capital appreciation in addition to regular interest payments. Therefore, choice B is the best answer. The other options (warrant, lease, extendible note) do not fit the description of a fixed-income security with a call option on common stock.

A Is a Fixed-Income Security Issued by a Company with a Call