If a company issues debt that is convertible at the corporation's option, in substance, the debt is:
A)Equity
B)An Asset
C)Debt
D)Subordinated

Question

Quizplus · Accepted Answer

The debt is convertible at the corporation's option, which means that the corporation has the right to convert the debt into equity at any time. This means that the debt is essentially equity, as it can be converted into equity at the corporation's discretion.

If a Company Issues Debt That Is Convertible at the Corporation's