Corporation GHI Has Issued Bonds in $100,000 Increments to Raise

Multiple Choice

Corporation GHI has issued bonds in $100,000 increments to raise capital for product development efforts. The bonds contain a provision that allows the bondholders to exchange each bond for 25 shares of common stock. What are bonds with this type of arrangement called?

A) convertible bonds
B) equity bonds
C) debentures
D) callable bonds