Convertible Bonds: An Introduction

Overview: As the name implies, convertible bonds, or converts, give the holder the option to exchange the bond for a predetermined number of shares in the issuing company. When first issued, they act just like regular corporate bonds, albeit with a slightly lower interest rate.

This article provides an introduction to Foreign Currency Convertibe Bonds with examples.

Tags: FCCB, Conversion Ratio, Forced Conversion
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Source: Investopedia


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