Question

A convertible bond is one where a.the issuer can convert from a fixed interest rate to a floating one. b.the issuer can convert it from long-term to short-term. c.the issuer can retire the bond before its specified due date. d.the holder can convert the bond into common stock at a future time.

Answer 1

The answer is D.

Step-by-step explanation:

The correct answer is D. A convertible bond is the type of bond that the bondholder can convert into the company's common stock or share at a future time. It is a debt(fixed-income) instrument

Option A is wrong. This definition is not known. And same with option B.