Multiple Choice
The Ajax Corporation issues bonds that pay a minimum of 6% interest but that can pay more if corporate earnings reach certain specified levels. The holder of the bond may exchange it for stock of the corporation. This bond would be a:
A) callable income bond.
B) convertible participating bond.
C) convertible unsecured bond.
D) convertible secured bond.
Correct Answer:
Verified
Correct Answer:
Verified
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