Multiple choice

A bond giving the investor the option to get the value of bond equal to an equity share, at a pre-determined exchange price, is called

  1. coupon bond

  2. convertible bond

  3. commercial paper

  4. zero coupon bonds
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In finance, a convertible bond is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.

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