Q603
Bonds that can be converted into shares of common stock are classified as
A.
convertible bonds
AnswerB.
stock bonds
C.
shared bonds
D.
common bonds
Answer: Option A
Solution
Answer: Option A
Solution:
Bonds that can be converted into shares of common stock are classified as convertible bonds. A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares.