Q369
Issued bond which is considered as hybrid bond is called
A.
non-convertible bonds
B.
premium convertible bonds
C.
discount convertible bonds
D.
convertible bonds
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Issued bond which is considered as hybrid bond is called 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. The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.