Convertible bonds are usually

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Convertible bonds are typically callable, meaning the issuer has the right to redeem the bond before maturity. This is because a convertible bond gives the bondholder the option to convert it into a predetermined number of shares of the issuer's common stock, which could be disadvantageous to the issuer if the stock price were to rise significantly. Therefore, the issuer may choose to call the bond in order to avoid this risk. They are not necessarily mortgage bonds or senior bonds, and whether or not they are participating depends on the specific terms of the bond.

Convertible Bonds Are Usually