A bond which,at the election of the holder,can be swapped for a fixed number of shares of common stock at any time prior to the bond's maturity is called a _____ bond.

Question

Quizplus · Accepted Answer

A bond that can be swapped for a fixed number of shares of common stock at any time prior to the bond's maturity is called a convertible bond. The holder has the option to convert the bond into a fixed number of shares at a set price, which can be beneficial if the stock price increases.

A Bond Which,at the Election of the Holder,can Be Swapped