If the price of the associated mortgage bond drops, the homeowner can buy the equivalent face value of bonds at a discount, and use it to redeem the existing home mortgage loan.

如果和贷款关联的债券掉价，业主就能以低价购进等量面值的债券并用之冲抵现有的贷款。

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As more bonds were converted to equity and its share price tumbled, it scrambled to redeem the bonds, but was unable to beat the brokers.

ECONOMIST: Convertible bonds in Japan

Although there may be an expiration date on your coupon, your local laws most likely state that you can always redeem it for the amount you initially paid at regular price.

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