The conversion feature of a bond permits a:

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The conversion feature of a bond allows the bondholder to exchange their bonds for the company's common stock, typically at a fixed ratio. This provides the bondholder with the potential for capital gains if the stock price rises, while also offering downside protection in the form of the bond's fixed income payments. It is important to note that not all bonds have a conversion feature, and those that do may require certain conditions to be met before conversion is allowed (such as a minimum period of time before conversion can occur).

The Conversion Feature of a Bond Permits A