A bond where the investor is granted the right to receive payment in shares of underlying stock rather than in cash is called a

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A convertible bond gives the investor the option to convert the bond into a certain number of shares of the issuer's common stock, usually at a pre-determined conversion price. This means that the investor has the right to receive payment in shares of stock rather than in cash. A junk bond is a high-risk, high-yield bond, a zero-coupon bond pays no interest until maturity, and a bearer bond is a type of bond where whoever is in possession of the physical bond certificate is considered the owner and can collect the interest and principal payments.

A Bond Where the Investor Is Granted the Right to Receive