Asked by sophia dudich on Apr 27, 2024
Verified
Callable bonds are bonds that can be converted into common stock at the bondholder's option.
Callable Bonds
Bonds that are subject to redemption (buy back) at a stated dollar amount prior to maturity at the option of the issuer.
Common Stock
Shares of ownership in a corporation, giving holders voting rights and a portion of the company's profits through dividends.
- Ascertain and fathom the attributes and fiscal impacts of convertible bonds and callable bonds.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
Callable bonds are bonds that can be redeemed by the issuer before their maturity date, not converted into stock. Convertible bonds are the ones that can be converted into common stock at the bondholder's option.
Learning Objectives
- Ascertain and fathom the attributes and fiscal impacts of convertible bonds and callable bonds.