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A bond that can be exchanged for another security of the issuing firm is called a(n)?

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A bond that can be exchanged for another security of the issuing firm is called an Exchangeable Bond.

In contrast to convertible debt, which is converted into shares or cash when it matures, exchangeable bonds are swapped for shares at the issuer's discretion.

For Example:

Consider, for illustration, a bond issued by Company XYZ that may be converted into shares of Company ABC at a 50:1 exchange ratio. This implies that you could buy 50 shares of ABC stock for every $1,000 in par value of XYZ bonds you currently own.

A bond that can be exchanged for another security of the issuing firm is called an Exchangeable Bond.

To learn more about Bonds, visit the following link:

https://brainly.com/question/9817093

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