A security similar to a traditional convertible bond in that there is a strike price . What differs is that there is another price, even higher than the strike price, which the company's stock price must reach before an investor has the right to make that conversion .
|||Issuing contingent bonds is more advantageous to companies than issuing regular convertibles. Until an investor exercises the option, the company does not need to count shares in its calculation of diluted earnings.
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