Some bonds allow the borrower to repay the bond by issuing stock. These bonds are known as:
A) convertible bonds.
B) bonds with a loan covenant.
C) callable bonds.
D) senior bonds.

Name: Some bonds allow the borrower to repay the bond by issuing stock. These bonds are known as: A) convertible bonds. B) bonds with a loan covenant. C) callable bonds. D) senior bonds.
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Question

Quizplus · Accepted Answer

Convertible bonds give the bondholder the right to convert their bond into a certain number of shares of the company's common stock.

Some Bonds Allow the Borrower to Repay the Bond by Issuing