Asked by Janelle Lightbourne on Jun 05, 2024
Verified
Convertible bonds can be exchange for a fixed number of shares of the issuing corporation's stock.
Convertible Bonds
Bonds that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.
Issuing Corporation's Stock
The process by which a company offers its shares to the public for the first time or issues additional shares in the market.
- Acquire knowledge on the aspects and impacts of callable and convertible bonds.
Verified Answer
SP
Shanice PerryJun 11, 2024
Final Answer :
True
Explanation :
This is the basic feature of a convertible bond - it provides the option for the holder to exchange the bond for shares of the issuing corporation's stock at a fixed conversion price.
Learning Objectives
- Acquire knowledge on the aspects and impacts of callable and convertible bonds.