Multiple choice

What is a 'flip-flop' bond?

  1. A bond which is not adequately described in its public offering.

  2. A bond which can be easily converted into another type of debt instrument and back again.

  3. A bound with a mixture of advantages of ordinary shares and debentures.

  4. None of these
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B Correct answer
Explanation

A flip-flop bond is a financial instrument that allows the holder to switch between two different types of debt or interest rate structures at specified intervals.

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