Cedarwood Nuts and Bolts has decided to erect a new plant in downtown Winnipeg. To attract investors, they issued a debt security that paid a regular and attractive coupon and that also provided the purchaser with the option of trading the bonds for shares in the company. What type of bond did Cedarwood Nuts and Bolts issue?

a$)$ convertible bond

b$)$ income bond

c$)$ collateral trust bond

d$)$ junk bond