Which of the following defines Convertible Bonds the most?

- A convertible bond is a debt instrument which allows the issuer to redeem the bond debt before it reaches the stated maturity date.

- A convertible bond is a debt security that yields interest payments and can be exchanged at the option of the bondholder for common stock or some other specified ownership interest.

- A convertible bond is a fixed-income corporate debt security that yields interest payments and can be exchanged for preferred stock.

- A convertible bond is a debt instrument whose principal is adjusted based on changes in the Consumer Price Index.