Definitions for "Convertible bonds"
Bonds that can be exchanged at the option of the holder for preference shares or equity shares at a pre-decided price.
A debt instrument that has the option of being converted to common stock of the issuing entity. The convertibility option is considered a plus on a bond and might cause the rate paid on debt to decrease.
Bonds which can be exchanged for shares on or before maturity.... more on: Convertible bonds