question archive Sometimes investors convert bonds to stock in a company

Sometimes investors convert bonds to stock in a company

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Sometimes investors convert bonds to stock in a company. What kind of bond allows this exchange and what might be a reason for an investor to make the switch? If Bunny Ears were to issue ten bonds of $1,000.00 at an 8% coupon rate, how might the journal entries above change? Explain your reasoning.

 

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