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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Convertible Bonds

Definition:

We all wish we could have a convertible bond we could go cruising down the PCH with. Oh wait, wrong kind of convertible.

A convertible bond is a bond that can be converted into common stock. So you can cruise along with your bond, collecting coupons, and then switch lanes and convert into stock for faster growth (...possibly).