Bonds that contain a provision that allows the holders to exchange the bonds for other securities of the issuing corporation are called
A)debenture bonds.
B)secured bonds.
C)callable bonds.
D)convertible bonds.

Question

Quizplus · Accepted Answer

Convertible bonds contain a provision that allows the holder to convert the bond to other securities of the issuing corporation. Debenture bonds are unsecured bonds. Secured bonds are backed by collateral. Callable bonds contain a provision that allows the issuer to call back the bonds before maturity.

Bonds That Contain a Provision That Allows the Holders to Exchange