Question

A feature that allows bondholders to change each bond into a stated number of shares of common stock is called?

Answer 1

A conversion feature allows bondholders to change each bond into a stated number of shares of common stock.

The conversion function is a financial derivative that is valued separately from the underlying security. Embedded conversion functions contribute to the overall value of the security. Examples of convertible assets are convertible bonds and preferred stock.

An inseparable conversion attribute is in the money on the commitment date. A convertible financial instrument includes a BCF if the conversion price is lower than the fair value of the convertible shares on the grant date.

Learn about bondholders here:brainly.com/question/25525397

#SPJ4