To make their bonds more attractive, issuers may attach equity options to a bond issue. Other bond structures apply call and put options on the early retirement of debt securities. Bonds with options appeal to a wide investor base because they can be customized to an investor’s point of view. Debt and equity securities can be fine-tuned to meet special needs of the issuer. Specifically, convertible and exchangeable bonds are debt that may either be converted into or exchanged for equity. Debt with equity warrants are bonds sold with detachable call options on the issuer’s common stock. Hybrid instruments lead to the issuance of new equity when the equity options are exercised by the investor. The issuer must be mindful of the potential to dilute the interests of existing shareholders.