A debt obligation that is exchangeable into another security at the option of the investor is best described as a convertible bond.

Name: A debt obligation that is exchangeable into another security at the option of the investor is best described as a convertible bond.
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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, at an agreed-upon price.

A Debt Obligation That Is Exchangeable into Another Security at the Option