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

Question

Quizplus · Accepted Answer

Convertible bonds are bonds that can be converted into a predetermined number of common shares at a later date. This provides investors with the opportunity to potentially benefit from a rise in the company's stock price while also receiving regular interest payments.

When a Corporation Issues a Bond That Can Be Exchanged