Recently, you discovered a convertible, callable bond with a 5 percent semiannual coupon. If you purchase this bond you will have the right to:

Have the principal amount adjusted for inflation.

Defer all taxable income until the bond matures.

Convert the bond into a 5 percent perpetuity.

Force the issuer to repurchase the bond prior to maturity.

Convert the bond into equity shares.

Answer:

Force the issuer to repurchase the bond prior to maturity.

Convert the bond into equity shares.

Convertible bonds are bonds which can be changed into ordinary shares or equity on maturity while callable bonds are bonds which can be redeemed before maturity when the interest rate moves against the bond holder (1). This means that the issuer of the bond can repurchase it back before maturity. In this case therefore, a convertible, callable bond can both be converted to equity shares and redeemed before maturity.

Souce

https://www.quora.com/What-are-the-differences-between-convertible-and-callable-bonds#:~:text=Convertibles%20are%20those%20bonds%2C%20which,higher%20than%20prevailing%20interest%20rates.