A _____ bond can be exchanged for shares of stock at the bond owner's discretion.
A) stock
B) convertible
C) high yield
D) cumulative
E) call option

Question

Quizplus · Accepted Answer

A convertible bond can be exchanged for shares of stock at the bond owner's discretion. This means that the bond owner has the option to convert the bond into a predetermined number of shares of common stock. This can be a valuable feature for investors who believe that the stock price will rise in the future, as they can convert the bond and benefit from the price increase.

A _____ Bond Can Be Exchanged for Shares of Stock