Convertible Bonds Allow the Issuing Company to Convert Outstanding Bonds

question 113

True/False

Convertible bonds allow the issuing company to convert outstanding bonds to shares of common stock when the company deems necessary.

---

Definitions:

Face Value

The nominal value or dollar value of a security stated by the issuer.

Contract Rate

The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.

Market Rate

The prevailing rate of interest available on investments or the average cost of borrowing money in the market.

Issued

The process of making securities available for sale to the public or the amount of a product or securities distributed to the public.