Convertible debt and straight debt issued with warrants are simdar securities, because both are debt securities that represent potentiaf equify claims on the issuer's assets, in fact, convertibie debt can be thought of as straight debt plus nonderachable-warrants. However, several important distinctions do exist, Use the foliowing table to indicate whether the characteristec listed refers to convertible bonds or to stock warrants: If a firm expenences rapid growth subsequent to convertoble or bond-with warrant issues, does that make it more or leis likely that the securities wif be coriverted or exercised? More likely to be ronverted or exercised Less likely to be converted or exerdsed