Identifying the Bond with Equity Upside Potential

An investor is analyzing different types of bonds for their portfolio with a focus on risk and return characteristics. They come across three specific bond types: a convertible bond, a zero-coupon bond, and a callable bond. Each of these bonds has unique features that might appeal to different investment strategies.

Given the following characteristics associated with each bond:

• Bond A: Allows the bondholder to convert it into a predetermined number of shares of the issuing company’s stock.
• Bond B: Does not make periodic interest payments; instead, it is sold at a discount and matures at face value.
• Bond C: Can be redeemed by the issuer prior to its maturity date at specified terms.

Which of these bonds provides the potential advantage of benefiting from equity upside while still holding fixed income characteristics?