Convertible and non-convertible bonds, Financial Management

Bonds can also be classified into convertible and non-convertible depending upon whether they carry a conversion feature or not. Convertible bonds are the ones which can be converted into equity shares at the option of the bondholders. In this case, the ratio of conversion (the number of shares exchanged for the converted portion) or alternatively the conversion price (the price at which equity shares are exchanged for the converted portion of the debentures), and the period during which the conversion can be effected are specified at the time of the issue. Convertible bonds can be either fully convertible or partly convertible. In case of partly convertible bonds, the non-converted portion will carry interest until it is repaid as per the provisions in the indenture.

Posted Date: 9/8/2012 4:28:45 AM | Location : United States







Related Discussions:- Convertible and non-convertible bonds, Assignment Help, Ask Question on Convertible and non-convertible bonds, Get Answer, Expert's Help, Convertible and non-convertible bonds Discussions

Write discussion on Convertible and non-convertible bonds
Your posts are moderated
Related Questions
WHAT ARE THE IMPORTANCE OF DIVIDEND DECISION IN FINANACIAL MANAGEMENT?

Question 1 Describe the functions of merchant banking and functions of financial intermediaries Question 2 What do you understand by book building and Green shoe option

Discuss the benefits and drawbacks of maintaining multiple manufacturing sites like a hedge against exchange rate exposure. Answer:  To set up multiple manufacturing sites can

Active Portfolio Strategy: An active portfolio strategy is tracked by most aggressive investors and investment professionals who strive to make superior returns, after adjustm

Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi

Nominal spread of a non-treasury bond can be defined as the difference between the bond's yield and the yield to maturity of a benchmark treasury coupon security.



Taxation In the US, every state has a different set of rules governing the taxation of Hedge Funds and the investors who put their money in them. In some countries, Hedge Funds

Criticism of Profit Maximization Approach: (i) Ambiguous: - One practical complexity with this approach is that the term profit is ambiguous. Different people take dissimilar me