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convertible bond

   Also found in: Financial, Acronyms, Wikipedia 0.01 sec.
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Noun1.convertible bond - a bond that can be converted to other securities under certain conditions
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal


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J P MORGAN IS ASSISTING ITHMAAR BANK WITH ITS CAPITAL-RAISING PLANS FOR THE FIVE-YEAR MANDATORY CONVERTIBLE SUKUK, WHICH IS THE ISLAMIC EQUIVALENT OF A MANDATORY CONVERTIBLE BOND ISSUE.
A convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
It attempted to raise $150 million from a convertible bond issue and was willing to pay a 15% interest rate on top of it.
 
 
 
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