n NISM Certifications
X NISM Series X
Medium

Into what are convertible bonds typically converted at maturity?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Call option

  2. B

    Put option

  3. C

    Preference share

  4. Equity share

    Correct answer

Why this is the answer

Convertible bonds can be exchanged for a specified number of equity shares of the issuing company upon maturity.

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