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Convertible Bond

A type of corporate bond that may be exchanged for its predetermined share value at specified times during ownership. In short, a Convertible Bond is a form of currency that can be bought for a certain amount and exchanged later for a higher value or percentage of a property. These bonds are useful in real estate because they help buyers save money and cut costs when purchasing a home. Bonds are an easy way to pay for a home if the purchaser wants to make an initial payment that can be exchanged for more money down the road. Some homeowners are willing to take Convertible Bonds from sellers because they will mature at higher rates the longer they stay intact. If someone is in the market to buy a new property, all payment options should be taken into consideration. Money can be saved in the future by investing in Convertible Bonds now. In doing so, the bond will have matured to a higher value once it will need to be used or converted. The home owner can either accept your Convertible Bond as it is or it can be converted to cash.

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