Question

Convertible bonds are:________.

I. options attached to bonds that give the bondholder the right to purchase stock at a preset price without giving up the bond.
II. bonds in which the issue matures (converts) a little each year.
III. bonds collateralized with certain types of automobiles.
IV. bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.

Answer 1

Answer: bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.

Step-by-step explanation:

Convertible bonds are simply refered to as the bonds that which despite the fact that they yield interest payments, such bonds can be converted into either equity shares or common stock. This is done based on the bondholder's discretion.

Convertible bonds are bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.