The ________ feature allows the bondholder to change each bond into a stated number of shares of stock.

Question

Quizplus · Accepted Answer

The feature being described is the option for bondholders to convert their bonds into shares of stock, which is known as a conversion feature. Choices A, C, and D are not relevant to the description given. A call feature allows the issuer to redeem the bonds before maturity, a put feature allows the bondholder to sell the bond back to the issuer before maturity, and capitalization refers to the process of raising funds by issuing shares of stock or other securities.

The ________ Feature Allows the Bondholder to Change Each Bond