The Ajax Corporation issues bonds that pay a minimum of 6% interest but that can pay more if corporate earnings reach certain specified levels. The holder of the bond may exchange it for stock of the corporation. This bond would be a .

The Ajax Corporation issues bonds that pay a minimum of 6% interest but that can pay more if corporate earnings reach certain specified levels. The holder of the bond may exchange it for stock of the corporation. This bond would be a convertible participating bond.

Explanation:

A Convertible participating bond is a stock portfolio that, in addition to the preferred dividend, grants owners the right to claim surplus earnings (along with shareholders).

A convertible bond has become a fixed-income debt instrument that pays interest but can be exchanged to a specified number of common stocks or shareholdings. At certain periods during bond tenure, the conversion between bond to stock is performed and typically at bondholder's choice.

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you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%