A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero coupon instrument that is convertible into the common stock of the issuer The conversion ratio is fixed for the entire life of the note If investors wish to convert to the shares of the issuer, they must exchange the ...

The formula for conversion ratio is conversion rat ...

A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero-coupon instrument that

Question:

A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero-coupon instrument that is convertible into the of the issuer. The conversion ratio is fixed for the entire life of the note. If investors wish to convert to the shares of the issuer, they must exchange the LYON for the stock. As a result, the conversion price increases over time. Why? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...