Convertible bondsa. have priority over other indebtedness.b. are usually secured by a first or second mortgage.c. pay interest o

Question

marin [14]

3 years ago

15

Convertible bondsa. have priority over other indebtedness.b. are usually secured by a first or second mortgage.c. pay interest o

nly in the event earnings are sufficient to cover the interest.d. may be exchanged for equity securities.

Business

1 answer:

zmey [24] · Answer 1 · 2022-03-05T03:49:57+03:00

Answer:

d. may be exchanged for equity securities.

Explanation:

Convertible bonds

It is a debt security , which is fixed and which yields the interest payments , but it can be converted to a predetermined number of the equity shares or common stock .

The bond to stock conversion can be done at a number of times during the life of the bond .

These bonds are mostly issued by the companies which have low credit ratings and have potential of higher growth .