Convertible bonds normally have ________ to permit the issuer to retire or encourage conversion.
A) a put option
B) a call feature
C) a stock purchase warrant
D) a striking price

Question

Quizplus · Accepted Answer

Convertible bonds typically have a call feature, which allows the issuer to redeem or retire the bonds before their maturity date. This feature is included in convertible bonds to provide an incentive for holders to convert their bonds into shares of common stock instead of waiting until maturity.

Convertible Bonds Normally Have ________ to Permit the Issuer to Retire