question archive Bonds that may be exchanged for common stock at the option of the bondholders are called Select one: a
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Bonds that may be exchanged for common stock at the option of the bondholders are called
Select one:
a.
stock bonds.
b.
convertible bonds.
c.
callable bonds.
d.
options.
Answer:
b.convertible bonds.
Bonds that may be converted into common stock is called convertible bonds.
There are no Stocks Bonds , Stocks and bonds are different.
Callable bonds are those bonds which can be called by the company before the maturity.
Option is a financial contract that gives investor the right not the obligation to buy or sell an assets at predetermined price.