Downside risk of convertible bonds, Financial Management

When the underlying stock becomes worthless, the percentage price declines the investors experience is given by,

Percentage of Downside Risk=    2188_downside risk of convertible bond.png

It is also called premium over intrinsic value. The higher the premium over the intrinsic value, all other factors remaining constant, the less attractive the convertible bond.

Posted Date: 9/10/2012 7:30:52 AM | Location : United States







Related Discussions:- Downside risk of convertible bonds, Assignment Help, Ask Question on Downside risk of convertible bonds, Get Answer, Expert's Help, Downside risk of convertible bonds Discussions

Write discussion on Downside risk of convertible bonds
Your posts are moderated
Related Questions
Current Liabilities: A liability is an obligation to convey assets or do services at some future date. For purposes of balance sheet analysis, it is important to create a dist

Q. Definition of Financial Management? As-per to Joseph L. Massie 'Financial management is the operational activity of a business that is responsible for obtaining as well as e

Fundamentals of Structured Product Engineering 1. (a) Let r m denote the m month swap rate (or Libor rate). Subsequently the 3 × n month forward rate f (3 ×n )

Q. What is Unsanctioned Expenditure? The expenditure, which is regularly incurred without the sanction of the competent authority or beyond the sanctioned limit of funds provid

When an investor buys a bond in between coupon payments, he is supposed to compensate the seller with the coupon interest earned on the bond from the last coupon

Discuss the applicability of an operating cycle in cabbage growing business in Uganda.

Floating Rate Notes (FRNs): When interest rates are high and the general outlook is either stable or indicating the possibility of a downward trend in return, then an investor

Consolidations of Merger - amalgamation A consolidation is a combination of two or more companies into a new company. In this form of merger all the existing companies which co

Q. Illustrate the Scope of Financial Management? Financial management as an educational discipline has undergone notable changes over the years with regard to its scope of func

What factors are responsible for the recent surge in international portfolio investment (IPI)? Answer:  The recent surge in international portfolio investments denotes the global