Corporation GHI has issued bonds in $100,000 increments to raise capital for product development efforts. The bonds contain a provision that allows the bondholders to exchange each bond for 25 shares of common stock. What are bonds with this type of arrangement called?

Question

Quizplus · Accepted Answer

Bonds with the provision to exchange them for shares of common stock are called convertible bonds.

Corporation GHI Has Issued Bonds in $100,000 Increments to Raise