Answer: convertible bond
Explanation: A convertible bond is the security of fixed-income debt that generates interest payments and can be transformed into a predefined number of common stock or equity stocks.
The transition from the bond to equity stock can be made during the lifetime of the bond during certain times and is usually at the bondholder's authority.
Convertible bonds are a versatile choice for corporations to fund. A convertible bond provides stakeholders a form of hybrid investment that has bond characteristics such as interest payments as well as the ability to own the stock.