Convertible bonds, warrants, and other exotic bond features

As the name suggests, convertible bonds allow the owner the option to convert the bonds into a fixed number of shares of common stock.

Innovative Energy LLC is a start$-$up company that just raised $$100,000$ to conduct a third$-$party feasibility study on its business model. The company agreed to treat the $$100,000$ investment as debt at $10\%$ interest rate; however, the investor has the right to exchange the debt for common stock during the company's next financing round. Which of the following terms best describes the $$100,000$ investment?

Convertible bond

Warrant

Consider the case of an investor, Nazim:

Nazim wants to include putable bonds in his investment portfolio. Nazim is likely to put the bonds when:

He has reinvestment options with higher yields.

He has reinvestment options with lower yields.

Nazim also recently bought bonds with a clause stating that interest will be paid only when the company has enough earnings to pay for it$.$ Nazim has invested in