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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