A(n) _____ bond can be exchanged for shares of equity at the owner's (bondholder's) discretion.

Question

Quizplus · Accepted Answer

A convertible bond is a type of bond that can be exchanged for shares of equity at the owner's discretion. This means that the bondholder has the option to convert the bond into a predetermined number of shares of the issuer's common stock. This can be advantageous to the investor if the stock price increases, as they can then convert the bond into stock and potentially make a profit.

A(n) _____ Bond Can Be Exchanged for Shares of Equity