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

Question

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A convertible bond grants the investor the option to convert their bond into a predetermined number of shares of the underlying stock at a specified price. This provides the investor with the potential for capital appreciation if the stock price rises, as opposed to just receiving fixed income payments from a typical bond.

A Bond Where the Investor Is Granted the Right to Receive