n NISM Certifications
XV NISM Series XV
Medium

Identify the bonds that can be converted into equity.

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Callable Bonds

  2. B

    Puttable Bonds

  3. Convertible Bonds

    Correct answer

  4. D

    Zero Coupon Bonds

Why this is the answer

Convertible bonds are issued as debt instruments but can be converted into equity, allowing investors to participate in the company’s ownership.

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