Bonds that can be exchanged with other stock issued by same firm are classified as

Bonds that can be exchanged with other stock issued by same firm 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. 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.