Fill the details/instructions form and checkout for your essay - pro writers; top college graduates only in less than 5 mins, NO AI—Plagiarism-free!.
Posted: January 23rd, 2023
1. De ne and quantify the following terms related to convertible bonds:
(a) conversion ratio, (b) callability, (c) fair premium, (d) parity, (e)
breakeven, and (f) dilution.
2.
You are given the following input information:
Face value of the CB
$100
Issue price of the CB
$120
Equity
price
$10
Conversion
ratio
11
(a) What is the parity
value per bond?
(b) What is the premium
over parity per bond?
(c) Express the same
results on a per-share basis.
3.
In the previous question, you had computed the value of parity and
premium over parity. Suppose the coupon rate on the convertible was 5% and the
dividend yield on the equity is 1%. What is the extra income from the
convertible relative to equity? What is the breakeven for the convertible?
4. What are the di erent types of embedded options within a
convertible bond? Explain whether they bene t the investor or the issuer.
5. What incentive issue has been commonly resolved by the issuance of
a convertible bond by the management of a rm?
6. The face value of a convertible bond is $100, and the issue price
is $150, with a conversion ratio of 5. The market price of the equity shares is
$25. Compute the (a) conversion price, (b) parity, and (c) premium of the bond.
Every student wants the best grades and that’s our Focus
Our team consists of outstanding writers who have specialized knowledge in specific subject areas and professionals experienced in academic research writing. They hold at least a graduate degree—230 with Masters and MSN qualifications, experts carefully selected and trained to ensure the best quality of our work. .
We’re dedicated to bringing on board top-notch writers who can provide excellent work at prices that make sense for college students; affordable papers. Our goal? To give you the best bang for your buck without ever compromising on the quality of our essay writing services—or the content of your paper. #Don’t forget to use the DISCOUNT code in the COUPONS section of the order form before you pay!.
The service guarantees that our final work is 100% original, rearched and human written expertly. We are committed to delivering plagiarism-free and AI-free work to each university/college student's 'write my paper' request. To uphold this promise, we check every draft for any possible instances of duplication, wrong citation, grammar errors and artificiality before we send it to you. Thus, you can always rely on us to write genuine and high-standard content for your essay assignments.
When you trust to place an order with Homework Ace Tutors, here is what happens: