Examlex
A convertible bond has a face value of $1000 and the conversion price is $40 per share.The stock is selling at $30 per share.The bond pays $65 per year in interest and is selling in the market for $950.It matures in 7 years.Market rates are 10 percent annually.
(a)What is the conversion ratio?
(b)What is the conversion value?
(c)What is the conversion premium (in dollars and percent)?
(d)What is the floor or pure bond value? (use annual analysis)
(e)Compute the downside risk as a percentage.
Q1: The Dow Theory puts emphasis on long
Q14: Which of the following statements are ?<br>A)Debt
Q15: Duration will not help international bond managers
Q25: Which of the following statements about liquidity
Q29: Smart money rules or approaches to the
Q30: Duration times the reinvestment rate will give
Q37: One disadvantage to stock index futures is
Q44: Assume a $1,000 Treasury bill is quoted
Q70: The market capitalization of General Electric,Microsoft,and Exxon
Q78: An end load fund has<br>A)No charge upon