Question
__ give investors the right.but not the obligation to convert loan notes into __ at a specified price and at a given future date. (Select the missing pair of words below to complete the sentence) Convertible bonds and ordinary shares Trade receivable and cash Long-term loan and retained earnings Current bonds and share premium
Answer
4.2
(447 Votes)
Sarah
Veteran · Tutor for 10 years
Answer
Convertible bonds and Ordinary shares
Explanation
## Step 1:The problem question gives us enough clues about the relevant financial instruments. As per these "investors have right but not the obligation" and also phrases like "convert loan notes into (x).....". This aligns with common investment scenarios that Inherent to convertible bonds where investors are given the choice to convert their bonds into stocks of the company. Convertible bonds represent a hybrid between debts and equities. ## Step 2:Once bonds are converted, the investors don't get around in cash as they say the changes, but they get it in the company's common stock values called ordinary shares. Here is (x) comes as Ordinary Shares.