Convertible bond

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Convertible bond is bondholders have the option of converting bonds into stock at a specified exchange rate.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Convertible bond. Bondholders have the option of converting bonds into stock at a specified exchange rate.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Convertible bond. Security that is convertible into shares of common stock, at a fixed price, at the option of the bondholder.

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