Convertible bonds are usually secured by a first or second mortgage. pay interest only in the event earnings are sufficient to cover the interest. may be exchanged for equity securities. have priority over other indebtedness.

Question

Chemistry

Clarke

25 February, 05:37

Convertible bonds are usually secured by a first or second mortgage. pay interest only in the event earnings are sufficient to cover the interest. may be exchanged for equity securities. have priority over other indebtedness.

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Answers (1)

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Carmen Todd · Answer 1

may be exchanged for equity securities.

Explanation:

Convertible bonds -

It refers to the type of bond which can easily be converted to stocks.

It refers to as the fixed - income debt security which can give the interest payments and can be converted to some predetermined number of equity shares and common stock, is referred to as convertible bonds.

The process of conversion can be done at any time period of the bond.

Hence, from the given information of the question,

The correct answer is may be exchanged for equity securities.