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
How does the theory of comparative advantage relate to the currency swap market? Answer:  Name recognition is very important in the international bond market. With no it, even a

Interest rate risk is the risk wherein the investor in bonds faces the risk of a fall in his bond price as and when there is a rise in the market interest r

Q. Market condition Affecting cost of capital? Market condition: if an investor is purchasing a security where the risk of the investment in significant the opportunity for add

Q. What is usual Approach of capital Structure? Ans. Traditional Approach: - The traditional approach establishes middle among the Net Income approach and the Net Operating Inc

#The following items are found in the The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000.

It is a method of budgeting in which the actions that incur costs in every functional area of a company are recorded and their relationships are defined and evaluated. Activities a

what is mean by breakeven point

Significance of cost of capital

Explain why we measure a project's risk as the change in the CV. We compute a project's risk as the change in the coefficient of variation for the reason that this focuses on t

Your construction company is evaluating the proposed acquisition of a new earthmover. A consulting company you hired developed the following analysis last year at a cost to you of