A feature that allows bondholders to change each bond into a stated number of shares of common stock is called

Question

Quizplus · Accepted Answer

A conversion feature allows bondholders to convert their bonds into a stated number of shares of common stock. Option A, stock purchase warrants, are a separate and distinct type of security that gives the holder the right (but not the obligation) to purchase a specified amount of common stock at a set price within a certain time frame. Option B, call feature, refers to the issuer's right to redeem the bonds before their maturity date. Therefore, the correct choice is C.

A Feature That Allows Bondholders to Change Each Bond into a Stated