3. convertible bonds, warrants, and other exotic bond features as the name suggests, convertible bonds allow the owner the option to convert the bonds into a fixed number of shares of common stock. innovative energy llc is a start-up company that just raised $100,000 to conduct a third-party feasibility study on its business model. the company agreed to treat the $100,000 investment as debt at 10% interest rate; however, the investor has the right to exchange the debt for common stock during the company’s next financing round. which of the following terms best describes the $100,000 investment? convertible bond warrant consider the case of an investor, nazim: nazim wants to include putable bonds in his investment portfolio. nazim is likely to put the bonds when: he has reinvestment options with lower yields. he has reinvestment options with higher yields. nazim also recently bought bonds with a clause stating that interest will be paid only when the company has enough earnings to pay for it. nazim has invested in . grade it now save & continue continue without saving