Bonds that permit bondholders to convert them into common stock at their option are known as callable bonds.

Name: Bonds that permit bondholders to convert them into common stock at their option are known as callable bonds.
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Bonds that permit bondholders to convert them into common stock at their option are known as convertible bonds, not callable bonds. Callable bonds are bonds that can be redeemed by the issuer before their maturity date.

Bonds That Permit Bondholders to Convert Them into Common Stock