Bonds that can be converted into shares of common stock are classified as_________?
Correct answer: A. Convertible bonds
- A. Convertible bonds
- B. Stock bonds
- C. Shared bonds
- D. Common bonds
Explanation
A convertible bond gives its holder the contractual right to convert the bond into shares of the issuing company’s common stock under specified terms. The other labels are not standard bond classifications.
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