The security ranging term of convertible bond is between 25 & 30 years, providing the owner authority to aquire the issuers' common stock directly from the issuer before purchasing it in the open market.

Convertible bonds are termed as subordinated debt & are risky than unsubordinated debt.

Features in structure of a convertible bond are: conversion price (price paid per share to attain the common stock of the issuer), conversion ratio (this ratio verify the number of shares the bond holder will collect per bond they exchange), parity (conversion parity is not the point at which profit, nor loss, would be made.

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