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mixer [17]
2 years ago
5

A convertible bond would let the investor exchange it for:____.

Business
1 answer:
worty [1.4K]2 years ago
3 0

A convertible bond would let the investor exchange it for common stock

What is a convertible bond?

A convertible bond allows the investors (lender) to exchange the bond for something else within a given time under any conditions specified in the bond indenture.

How does a convertible bond work?

A convertible bond pays fixed-income interest payments, but can be converted into a predetermined number of common stock shares. The conversion from the bond to stock happens at specific times during the bond's life and is usually at the discretion of the bondholder.

Common stock :

Common stock is a security that represents ownership in a corporation. In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid. There are different varieties of stocks traded in the market.

Learn more about common stock :

brainly.com/question/25749153

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