This bond, often issued publicly, this provides investor with a fixed maturity date and conversion price. The issuer pays periodic interest until the maturity date, according to maturity date the issuer can convert the bond into equity shares at a predetermined price or redeem them from the face value.

Conclusion
Convertible bonds offer investors the potential for income and equity with in a single investment. There are types of convertible bond available, and investors should consider the pros and cons of each before deciding to invest. While convertible bonds offer reduced the downside risk, they also come with lower yield and the risk of dilution if the bonds are converted in common shares. Overall convertible bond can be useful investment tool for those seeking income and equity participation.