In the October 26, 1992, prospectus summary of the Staples 5% convertible subordinated debentures due 1999, the offering stated: “Convertible into Common Stock at a conversion price of $45 per share . . .” If the par value is $1.000, what is the conversion ratio?
Answer to relevant QuestionsAnswer the below questions. a. Suppose that a convertible bond has a conversion ratio of 20 and a delta of 0.70. For a price change of $0.125 for the stock price per share, what is the approximate change in the convertible ...What is the difference between a busted convertible and a distressed convertible? Consider a convertible bond as follows: par value = $1,000; coupon rate = 9.5% market price of convertible bond = $1,000 conversion ratio = 37.383 estimated straight value of bond = $510 yield to maturity of straight bond = ...What does the empirical evidence suggest about the behavior of corporate credit spreads concerning whether credit spread changes should be measured on an absolute versus relative basis? Answer the below questions. (a) What are corporate governance ratings? (b) Are corporate governance ratings reported to the investing public? (c) What factors are considered by services that assign corporate governance ...
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