Convertible Debt
Dilutive Securities: Securities that may become common stock if conditions permit
Convertible Debt--Bonds
- Exchange of bonds at the behest of the holder.
- Convertibility feature can make the security more attractive.
- Helps keep interest costs down.
- Accounted for as pure debt at issuance
Cash $
Discount (if any) $
Bonds Payable $
Premium (if any) $