Why think that convertibles are riskier than straight bonds?

Q: Is having a call feature advantageous for a bond issuer? Why do you think that is?

A: A call provision seems to be a clause in a bond or even other fixed-income instruments agreement…

Q: to a bond holder than a

A: Investors are offered with opportunities to invest in different types of debt instruments. They have…

Q: Is bond financing risky or safe for a company? Explain in details. Why bond investing safer for…

A: Bond financing is a sort of long-term borrowing that is Particulary used by  various state and…

Q: Convertible bonds generally have lower coupon rates than non-convertible bonds of similar default…

A: Convertible bonds offer a conversion feature which allows bondholders to obtain specified number of…

Q: Would there be positive interest rates on bonds in a world with absolutely no risk

A: The fixed income securities which are issued by a firm is known as bond. The fixed income is known…

Q: less convex than otherwise similar securities without a p

A: Step 1 A putable bond is a form of bond in which the holder (investor) has the right but not the…

Q: Which of the following would cause lower bond yields? greater maturity risk or more liquidity?

A: Maturity risk premium: It is the measure of additional return that is expected in an investment by…

Q: Why do convertible bonds and bonds with warrants have lowercoupons than similarly rated bonds that…

A: Bonds with warrants are providing lesser coupons compared to similarly rated bond because it…

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 are U.S. Treasury bonds not completely riskless?

A: Answer: Usually, government issues treasury bonds (T-bonds). All the investment including treasury…

Q: Briefly describe why investors should buy high-quality (non-speculative) bonds based on…

A: Bonds are fixed income instruments and are rated according to their risk of default by independent…

Q: What are the risks associated with stocks that may not be also in bonds?

A: The question is based on the concept of different types of risk associated with different financial…

Q: Why are convertibles and bonds with warrants typically offered with lower coupons thansimilarly…

A: Convertibles and the bonds with warrants mean such securities can be convertible into equity share…

Q: Why are derivatives considered riskier than other financial instruments?

A: Financial Instruments:Financial instruments are the monetary contracts and assets that can be easily…

Q: issurance of convertible bonds to be an attractive form of financing

A: Financing:- Financing means to provide money to someone for a particular rate of Interest. This is a…

Q: Which is riskier to an investor, other things held constant—a callable bond or aputable bond?…

A: Callable bonds can be called away by the issuer before the maturity date, making them riskier than…

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: 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: Can issue characteristics (such as coupon and call features) affect the yield and price behavior of…

A: Bonds are debt instruments which are issued to raise fund for any project or expansion. These are…

Q: An example of a capital market security would be: a bond a Treasury bill commercial paper a…

A: A bond refers to the debt instrument that is generally issued by corporations in order to raise debt…

Q: Why are U.S. Treasury bonds not riskless?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

Q: Which should have the higher risk premium on itsinterest rates, a corporate bond with a Moody’s Baa…

A: it is  important to define risk premium Risk premium means it is investment return, an asset is…

Q: Which statement is not correct?

A: A convertible bond is a fixed interest-paying instrument that can be converted into a predetermined…

Q: bonds

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

Q: If junk bonds are “junk,” then why do investors buythem

A: Junk bonds are a type of bond which are regarded as non-investable bonds by the credit rating…

Q: What are the reasons for issuing convertible bonds rather than straight debt?

A: Convertible bonds: Convertible bonds are a kind of bonds that can be easily converted into…

Q: As a bondholder, what risks would you face, and how are these risk factors lower for bonds than they…

A: Bond:  A bonds area unit is typically thought to be a secure investment. Bonds are unit monetary…

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: These are corporate bonds that have  a higher rate of return with a higher level of risk?

A: The rate of return is the expression in the percentage of the gain or loss on investment against the…

Q: Which one of the following attributes is favorable for the convertible bond arbitrage?

A: Convertible bond arbitrage refers to the trading strategy that intends to exploit the differences in…

Q: What is a "call" provision? Why would bond issuers exercise this? Why would bond investors choose to…

A: Certain companies issue bonds with a 'call' provision.

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: Is it safer to invest in stocks than bonds?why or why not?

A: bond are debt instrument. stocks are a security that represents the ownership of a fraction of a…

Q: To describe the pros and cons of investing in stocks than bonds?

A: Pros of investing in stock than bonds are. 1. Stock is highly lequid it can be converted into cash…

Q: Why are the bonds treated as a conservative investment? Do you think the treasury bills are…

A: Bonds: Bonds are units of corporate debt that are issued by companies and are treated as tradeable…

Q: advantages and disadvantages of selling a combination of stocks and bonds?

A: Introduction: Bond is nothing but debt securities issued by a company or government if they want to…

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: What are call provisions and sinking fund provisions? Do these provisions make bonds more or less…

A: Call provision is an agreement on the bond, that the issuer of the instrument has the right to…