Some Bonds Allow the Borrower to Repay the Bond by Issuing

question 46

Multiple Choice

Some bonds allow the borrower to repay the bond by issuing stock. These bonds are known as:

• A) convertible bonds.
• B) bonds with a loan covenant.
• C) callable bonds.
• D) senior bonds.

---

Definitions:

Bumper Crop

An exceptionally large harvest of crops in a given season, often beyond what was expected, typically resulting in decreased prices due to increased supply.

Farm Revenues

The total income received by a farm from the sale of its products and services.

Total Revenue

The sum of money a company earns from selling its products or services, prior to deducting any costs.

Elastic

Describes a situation in which the quantity demanded or supplied of a good or service changes significantly as its price changes.