Examlex
What of the following is the correct assignment of the classes of the following compounds?
Convertible Bonds
Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at certain times during their life, usually at the discretion of the bondholder.
Premium Bond
A bond trading above its face value or principal amount, often due to lower market interest rates compared to the bond's coupon rate.
Capital Gain
The profit earned from the sale of an asset or investment when the selling price exceeds the purchase price.
Discount Bond
A bond that is sold for less than its face value, typically because the prevailing interest rates are higher than the bond's coupon rate.
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