A bond that grants the investor the right to exchange their bonds for common stock,is called a

Question

Quizplus · Accepted Answer

A convertible bond provides the investor with the option to convert their bonds into a fixed number of common stock shares, usually at a predetermined price. This feature allows the investor to benefit from any potential increase in the company's stock price, in addition to receiving regular interest payments from the bond.

A Bond That Grants the Investor the Right to Exchange