A Convertible Bond

question 64

Multiple Choice

A convertible bond:

• A) Is a combination of a loan and a put option.
• B) Normally has a perpetual conversion feature.
• C) Has a value which is equal to its straight bond value plus it conversion value.
• D) Has a minimum value which is equal to the greater of the two floor values.
• E) Is worth an amount equal to the greater of the straight bond value or the conversion value plus the option to abandon value.

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Definitions:

Senior Manager

A high-level executive responsible for overseeing the management and strategic direction of a company or its major divisions.

Performance Management

The process of ensuring that organizational goals are consistently met in an efficient and effective manner through the management of employee performance.

Performance

A measure of how efficiently and effectively a person or organization achieves its goals.

Employee Performance

The evaluation of an employee's job related activities and their effectiveness in fulfilling their duties and responsibilities.