Convertible Bonds-Corporate Bonds
State the term Convertible Bonds in Corporate Bonds?
Expert
Convertible Bonds:
• Such are bonds which can be transformed into shares of common stock at certain predetermined ratio at the discretion of bondholder.
• The convertible feature permits the bondholders to share in good fortunes of the firm when the firm’s stock increases above some level.
• The conversion ratio is set and hence the firm’s stock price should appreciate 15 to 20 % before it is gainful to transform bonds into equity.
• To secure this benefit, bondholders would be willing to recompense a premium.
Who were the creators of uncertain volatility model?
A company with a market capitalization of $100 million has no debt and a beta of 0.8. What will its beta be after it borrows $50 million (giving that there are no other changes and no taxes)?
Why is Split useful?
Do expected equity flows coincide along with expected dividends?
You are an analyst in the financial division of Flipper Industries (FI) which has a beta of 1.80 (you are risk-philic, so you enjoy the thrill of working somewhere so risky). The company just paid a dividend of $1 and dividends are expected to grow at 5% per year. The
Does the book value of the debt all the time coincide with its market value?
The market risk premium is difference among the historical return upon the stock market and the risk-free rate, for yearly. Why is this negative for some years?
Which data is the most suitable for finding betas?
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
Write some point regarding Market for Corporate Bonds.
18,76,764
1941909 Asked
3,689
Active Tutors
1444786
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!