What is a convertible? If a company decides to raise capital by issuing convertible bonds, how would

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What is a convertible? If a company decides to raise capital by issuing convertible bonds, how would the terms on the bond be set? Consider specifically the maturity, coupon rate, and call features of the bond, as well as the conversion price (or conversion ratio), together with any other parameters required for the analysis.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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