Convertible notes may be best described as having characteristics of both liabilities and bonds.

Name: Convertible notes may be best described as having characteristics of both liabilities and bonds.
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Convertible notes are best described as having characteristics of both debt and equity, not liabilities and bonds. They are a form of short-term debt that can convert into equity, typically at the discretion of the holder or upon certain events.

Convertible Notes May Be Best Described as Having Characteristics of Both