Convertible bonds are corporate bonds that the corporation issues and sells that has a lower interest yield that can, then, be converted into common stock in the issuing entity. Convertible bonds are only found in the corporate market and have features of both corporate bonds and common stocks. Convertible bonds are issued as unsecured, but are allowed to be converted into a particular number of shares of the issuing company’s stock during a certain time period.
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Last updated: 12/15/2017
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