[amp_mcq option1=”provision” option2=”guarantee” option3=”warrants” option4=”convertibles” correct=”option3″]<\/p>\n
The correct answer is: C. warrants<\/strong><\/p>\n A warrant is a security that gives the holder the right, but not the obligation, to buy a specified number of shares of a company’s stock at a specified price on or before a specified date. Warrants are often issued as part of a bond offering, and they can be used to make the bonds more attractive to investors.<\/p>\n A provision is a clause in a contract that sets forth the rights and obligations of the parties involved. A guarantee is a promise to pay off a debt or fulfill an obligation if the original debtor fails to do so. A convertible is a security that can be converted into another security, such as a stock or a bond.<\/p>\n In the context of the question, the type of option that permits bond holder to buy stocks at stated price is a warrant. Warrants are often issued as part of a bond offering, and they can be used to make the bonds more attractive to investors.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”provision” option2=”guarantee” option3=”warrants” option4=”convertibles” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-47911","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n