Contrast the Nasdag and National Market System with the OTCBB. Describe the conversion priviege on a convertible security. Explain how the market price of the underiying common stoc affects the market price of a comvertible bond (Wote, Your the page may be in this forman)
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Contrast the Nasdag and National Market System with the OTCBB. Describe the conversion priviege on a convertible security. Explain how the market price of the underiying common stoc affects the market price of a comvertible bond (Wote, Your the page may be in this forman)
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- Convertible securities can usually be sold with interest rates ____ other nonconvertible securities a. equal to b. with no relation to c. lower than d. higher thanDiscuss how the price of a puttable bond will differ from the price of a similar, plain vanilla bond and the main determinants of this price difference.What is a convertible bond? If a company decidesto raise capital by issuing convertible bonds, howwould the terms on the bond be set? Considerspecifically the maturity, coupon rate, and callfeatures of the bond, as well as the conversionprice (or conversion ratio), together with any otherparameters required for the analysis.
- The theoretical floor value for a convertible bond is its A. pure bond value. B. onversion price. C. conversion value. D. par value.Which of the following is the best explanation of what the call premium is? Group of answer choices The amount above the face value an investor must pay to purchase the bond. The additional amount above the face value that the company must pay to repay the bond early. The additional amount above the market price that a company must pay to repay the bond early. The amount above the market price that an investor must pay to purchase the bond.Give typing answer with explanation and conclusion How are convertible bonds are handled when calculating WACC?
- Martin Bowman is preparing a report distinguishing traditional debt securities from structured note securities. Discuss how the following structured note securities differ from a traditional debt security with respect to coupon and principal payments:a. Equity index-linked notes.b. Commodity-linked bear bond.Consider a security that pays income to its holders (e.g., a dividend-paying stock, or acoupon bond). Should the forward price of this security (for a contract that matures attime T), F0,T, be higher than, lower than, or equal to the security's current spot price?Why?.Which one of the following terms applies to a bond that can be exchanged for the issuing company's common stock in the future? Group of answer choices Callable Municipal Zero coupon Convertible
- Convertible bonds normally allow bondholders to convert the bond into another security. True FalseDiscuss the functioning and merits of callable and puttable bonds from an investor’s perspective. Discuss how the price of a puttable bond will differ from the price of a similar, plain vanilla bond and the main determinants of this price difference. In which market environment does the issuance of a callable bond make more sense from a corporate issuer’s perspective?Explain the principle of immunization when used with a bond portfolio. What is bond portfolio immunization attempting to achieve? How is bond portfolio immunization achieved? Which two (2) bond risk components interact to make immunization successful? Explain how these bond risk components interact to immunize a bond portfolio as interest rates change.