Why would a corporation consider a convertible bond issuance

Assignment Help Financial Econometrics
Reference no: EM132191339 , Length: 3 pages

Option: Bond Markets

The corporate bond market is an important source of capital as corporations are looking to expand operations, develop new facilities and optimize overall capital structure. As each corporation has a different profile, their ability to tap into this market varies based on a number of factors. In this assignment, write a paper that analyzes concept and attributes as they pertain to the utilization of the bond market by a corporation:

- Why would a corporation consider a convertible bond issuance?
- Identify common debt covenants and their implications to the issuing corporation.
- What is a sinking fund and how does it come into consideration during a bond issue?
- Provide one example of a corporation that has used a new bond issuance to support a share repurchase program. Evaluate the outcome of this activity.

Your response must adhere to the following standards:
- Be 3 pages in length, excluding the title or reference pages.
- Cite at least 2 sources scholarly references

Reference no: EM132191339

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