Know about URO Convertible Bond.

EURO-CONVERTIBLE BONDS:-

It is a debt instrument which gives the holder an option to convert the bond in to a predetermined number of equity shares of the company. The bond carry a fixed rate of interest. If the user company desires, the issue of such bonds may carry two options viz-

Call option i.e. the issuer company has the option of calling(buying) the bond for redemption before the date of maturity of the bonds. Where the issuer’s share price has appreciated substantially, i.e. far in excess of the redemption value of the bonds, the issuer company can exercise this option. This call option forces the investors to convert the bond in to equity.
Usually this arises when the share prices reach a stage near 130% to 150% of the conversion price.

Put option : A provision of put option give the holder of the bonds a right to put(sell) his bonds back to the issuer company at a predetermined price and date. In case of Euro convertible bonds, the payment of interest on and the redemption of the bonds will be made by the issuer company in US Dollars.
So a good manager should be updated about this bond.