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    Question

    Which type of bond allows the holder to convert it into

    a specified number of equity shares?
    A Callable Bond Correct Answer Incorrect Answer
    B Puttable Bond Correct Answer Incorrect Answer
    C Convertible Bond Correct Answer Incorrect Answer
    D Zero-Coupon Bond Correct Answer Incorrect Answer

    Solution

    A convertible bond is a fixed-income corporate debt security that yields interest payments but can be converted into a predetermined number of the company's common stock or equity shares.

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