A conversion feature confers the option of redeeming a bond for the company's shares rather than cash.

Name: A conversion feature confers the option of redeeming a bond for the company's shares rather than cash.
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Question

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A conversion feature allows bondholders to convert their bonds into shares of the company, often at a fixed conversion ratio. This provides the bondholders with the option of owning equity in the company instead of receiving cash payments.

A Conversion Feature Confers the Option of Redeeming a Bond