Fixed Income
Convertible Bond
Definition
What is Convertible Bond?
A bond that may be converted into a stated number of shares under defined conditions.
Example in practice
How This Looks in Practice
The bondholder converts after the company's share priceThe market price at which one share is quoted or traded. rises sharply.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.