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

As you checked the Answer Key to Question 6 in the Mastery Check from this lesson you may have noted that each year's net cash flows are calculated by adding depreciation back to n

Q. What is Certified Financial Planner? Certified Financial Planner (CFP) - Individuals who are trained to develop and implement financial plans for businesses, individuals and


Explain about the liquidity premium theory of the term structure of interest rates. Liquidity premium theory: Liquidity premium theory asserts which, into a world of unce

Mathematical Property The sum of the deviations of the items from median, ignoring signs, is the least. For example, the median of 6, 10, 14, 18 and 22 is 14. The deviations fr

Can you draw Capital asset pricing model with example and explain?????

The financial manager of A ltd.co. expects that its EBIT in the current year is 10,000. The firm has 5% Deb. Amounting to Rs. 40,000., while 10% Pref. Share amounts to Rs. 20,000.

Determine the amounts to be recognised in profit or loss and in other comprehensive income in respect of the property for the year ended 31 December 2010.   Evaluate the compliance

Profit maximisation criterion Profit maximisation criterion is unsuitable and inappropriate as an operational objective of financing, investment and dividend decisions of a fi