Convertible Securities and Bond Valuation: Calculations and Investment Metrics

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Finance - Personal Finance

charlotte1oxhi Created by 10 mon ago

Cards in this deck(35)

The conversion ratio of convertible preferred stock is calculated as Par Value ($100) divided by _____

The parity price of common stock to preferred stock is determined by dividing the Preferred Price by _____

To find the parity price of convertible preferred stock, multiply the Common Stock Price by _____

The current yield of a bond is calculated by dividing the Annual Interest by _____

The conversion ratio of a convertible bond is calculated as Par Value ($1000) divided by _____

The parity price of common stock is determined by dividing the Bond Price by _____

To find the parity price of a convertible bond, multiply the Common Stock Price by _____

The taxable equivalent yield is calculated by dividing the Municipal Yield by (100% - _____)

The net (after-tax) yield is calculated by multiplying the Taxable Yield by (100% - _____)

The capital gain or loss of a municipal bond purchased at a premium and sold prior to maturity is calculated as Sale Price minus _____

The amortized basis is calculated by dividing the Premium by _____

The sales charge percentage for mutual funds is calculated as (POP - NAV) divided by _____

The public offering price (POP) is calculated as NAV divided by (100% - _____)

The option premium is the sum of Intrinsic Value and _____

The time value of an option is calculated as Option Premium minus _____

The breakeven point for the buyer or seller of a call is calculated as Strike Price plus _____

When should you use convertible in relation to current and conversion? You should use it when the integration of convertible with current, considering factors related to _____

The breakeven points for a long or short straddle or combination are calculated as Strike Price of the Call plus Total Premium and Strike Price of the Put minus _____

The balance sheet formula can be expressed as Total Assets = Total Liabilities + _____

Working capital is calculated as Current Assets minus _____

The current ratio is calculated as Current Assets divided by _____

The quick asset (acid test) ratio is calculated as (Current Assets - Inventory) divided by _____

The debt-to-equity ratio is calculated as Debt divided by _____

Basic EPS is calculated as (Net Income - Preferred Dividend) divided by _____

The dividend payout ratio is calculated as Annual Common Stock Dividend divided by _____

The P/E ratio is calculated as Current Market Price divided by _____

Equity in a long margin account is calculated as Long Market Value (LMV) minus _____

Equity in a short margin account is calculated as Credit Balance (CR) minus _____

Total (combined) equity is calculated as LMV plus Credit minus Debit minus _____

Excess equity is calculated as Current account equity minus 50% of _____

The minimum maintenance requirement for a long position is 25% of _____

The minimum maintenance requirement for a short position is 30% of _____

The margin requirement for a leveraged ETF is calculated as Leverage Factor times _____

Accrued interest for corporate/municipal bonds is calculated using the 360-day year and _____

Accrued interest for government bonds is calculated using the 365-day year and _____

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Convertible Securities and Bond Valuation: Calculations and Investment Metrics

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