Economics Bonds Questions
A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuer's common stock at the bondholder's discretion. This means that the bondholder has the option to convert the bond into equity ownership in the company. On the other hand, a non-convertible bond is a bond that cannot be converted into shares of common stock. It remains as a fixed-income security until its maturity date, where the bondholder receives the principal amount plus any interest earned.