When corporations found their traditional funding revenues drying up during the global financial crisis, one solution often

Question:

When corporations found their traditional funding revenues drying up during the global financial crisis, one solution often adopted by banks was to issue convertible bonds. Convertible bonds are often referred to as 'hybrid financing' as they have the characteristics of debt and equity. Differentiate the features of a convertible bond from a bond. Given that convertible bonds have debt and equity characteristics, explain how they should be classified in the balance sheet.