Examveda
Examveda

Bonds that can be converted into shares of common stock are classified as

A. convertible bonds

B. stock bonds

C. shared bonds

D. common bonds

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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