The ________ feature allows bondholders to change each bond into stated number of shares of stock.

Question

Quizplus · Accepted Answer

The feature described is known as conversion, which allows bondholders to convert their bonds into a stated number of shares of stock. Choices A, C, and D are incorrect because they do not describe this specific feature. A call feature allows the issuer to redeem or buy back the bonds before maturity. A put feature allows the bondholder to sell back their bonds before maturity. A swap feature allows two parties to exchange cash flows or assets.

The ________ Feature Allows Bondholders to Change Each Bond into Stated