Bonds which may be exchanged for a specified number of shares of capital stock are called:
A)Junk bonds.
B)Convertible bonds.
C)Debenture bonds.
D)Mortgage bonds.

Question

Quizplus · Accepted Answer

Convertible bonds can be exchanged for a specified number of shares of capital stock. Junk bonds are high-risk bonds, debenture bonds are unsecured bonds, and mortgage bonds are secured by a specific asset (such as a property).

Bonds Which May Be Exchanged for a Specified Number of Shares