Liquid Yield Option Notes or LYONS Have Which of the Following

question 122

Multiple Choice

Liquid yield option notes or LYONS have which of the following characteristics?
I. convertibility at a fixed conversion ratio
II. high coupon rates
III. a put feature that guarantees the right to redeem the bonds at a prespecified price
IV. convertibility at a fixed conversion price

• A) I and III only
• B) II and IV only
• C) I and IV only
• D) II and III only

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Definitions:

Expansion

Expansion refers to the phase of business growth and economic development where a company or economy sees an increase in scale, output, or market reach.

Negative NPV

A condition where the net present value of all cash flows associated with a project or investment is negative, indicating that it is not financially viable.

Payback Period

The length of time it takes to recover the cost of an investment.

PI

A mathematical constant represented by the symbol π, approximated as 3.14159, or the ratio of a circle's circumference to its diameter in mathematics. Alternatively, if referring to "present indifference" or a concept specific to an industry or study, clarification is needed.