issurance of convertible bonds to be an attractive form of financing

Q: What are the main advantages and disadvantages of            investing in bonds?

A: Bonds are debt instruments issued by an entity. The issuing entity can either be a corporate entity…

Q: Explain how bonds with warrants might help small, risky firms selldebt securities

A: Answer: Warrants are issued with a few common shares relative to convertibles, because all…

Q: What are the difference between debt and equity and explain how the bonds market operates.

A: Debt are instruments which are used to fund a company’s requirement. These instruments include bonds…

Q: The process of packaging and/or selling mortgages which are then used to back publicly traded debt…

A: Securitization is defined as the process of converting assets into marketable securities. The main…

Q: Which of the following statements about convertible bonds is correct? Before conversion,…

A: A bond sometimes is issued with convertible feature which lets the bondholder have the option but…

Q: Describe the issuer's rationale for using Convertible Bonds as a tool to raise funds.

A: Bonds are a form of loan or debt that is being issued by the organisation and on which regular…

Q: Define junk bonds and explain how junk bonds became an important factor in corporate bond market.

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: Disadvantages of selling a combination of stocks and bonds?

A: Issued stock: The number of shares a public company has sold to the investors, stockholders,…

Q: Why bonds is an investment opportunity and its benefits to bondholder?

A: Bonds are safe investment for investors and it is form of debt provided by investors to companies.…

Q: One of several reasons that companies might choose to issue bonds is to shift their capital…

A: Bonds are the liability for the company and its issue increases the borrowings. Whereas, equity…

Q: Debt Securities - These securities are in the form of debt or borrowings which have to be repaid by…

A: Debt Securities or Debt Instruments - Debt securities are financial instruments that provide their…

Q: that represent partial ownership of a firm. Sha

A: Loan or bond are the securities that represents lender or long term financial creditors of the firm.…

Q: What are stock warrants and convertible debt? How do stock warrants work? How does convertible debt…

A: Stock warrant (SW) is a contract through which investors get rights to purchase the particular…

Q: What are the pros and cons of a company’s decision to issue stock versus issuing bonds?

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: Which of the following lowers the required interest rate that firms have to pay on their bonds?…

A: Companies tend to pay larger interest rates as the risk is raised to the bond investor since the…

Q: Beacuase the conversion feature in a convertible bond is valuable to  bondholders, convertible bond…

A: No, the company cannot lower the cost of borrowing by selling the convertible debt.

Q: What is the advantage of issuing bonds instead of obtaining financing from the company’s owners?

A:

Q: Some market participants say that convertible bonds are “debt when you want them to be equity, and…

A: A bond is a kind of debt instrument that a public company or a government of country issues in the…

Q: Give one advantage and one disadvantage, from the perspective of the company seeking finance, for…

A: Advantages and disadvantages in next step.

Q: Why might the company choose to make the bonds convertible into common stock?

A: Bonds:   A bond is a financial instrument for raising debt as it is called a debt instrument. It…

Q: What are the advantages and disadvantages of convertibles to issuers? To investors?

A: The benefit of convertibles to an issuer is: It lowers the yield required in order to sell the debt…

Q: What are convertible bonds

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually, have a…

Q: What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to…

A: Advantages of selling a combination of stock and bonds are described as follows: Floating of both…

Q: Which statement is not correct?

A: The value of a convertible boand cannot be less then it's straight value

Q: bonds

A: Convertibles are defined as bonds that are issued by companies who want to grow. Convertibles are…

Q: In what major ways do stocks differ from bonds? When would bonds be a better investment choice than…

A: Bonds are units of corporate debts issued by companies and securitized as tradable assets. Shares…

Q: Which of the following is not a capital market instrument? a. Corporate stock b. Mortgages c.…

A: A capital market is a marketplace for financial investments that are either direct or indirect…

Q: What are the pros and cons of convertible bonds to a bond investor? Under what conditions would you…

A: Any issuers of corporate bonds sell bonds that can be exchanged into a fixed number of common-stock…

Q: If a firm expects to have additional financial requirements in the future,would you recommend that…

A: Convertible bonds: it is the debt security issued paying with fixed interest payments to the bond…

Q: Explain why a company might issue convertible securities instead of straightforward debt or equity.…

A: Convertible security is an instrument , usually a bond or a preferred stock, that can be converted…

Q: Why think that convertibles are riskier than straight bonds?

A: There are pros and cons to the use of convertible bonds as a means of financing by corporations. One…

Q: Bonds that can be exchanged for stock are called: Group of answer choices debenture bonds serial…

A: Convertible Bonds: These bonds are issued by corporations and that can be converted to shares of the…

Q: Explain why municiple bonds are preferred by certain types of investors.

A: This question pertains to the fact that some sorts of investors prefer municipal bonds.

Q: What is a convertible bond? If a company decidesto raise capital by issuing convertible bonds,…

A: Conversion bond is the security of a fixed income that brings interest payments, but can be…

Q: What economic circumstances might cause investors to take advantage of a bond's convertible feature?

A: This question explains about the investors to take advantage of a bond's convertible feature

Q: Why do convertible bonds referred to as potential common shares?

A: Bond: It can be defined as the instrument that carries a fixed rate of income and represents the…