A ________ bond is a hybrid security with features of both debt and equity.

Name: A ________ bond is a hybrid security with features of both debt and equity.
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A convertible bond is a hybrid security because it has features of both debt and equity. It starts as a debt instrument, with a fixed interest rate and a maturity date, but can be converted into equity (usually common stock) at a pre-determined price at a later date, providing the holder with potential upside if the stock price increases.

A ________ Bond Is a Hybrid Security with Features of Both