What are the advantages of issuing convertible bonds

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1a. What factors need to be considered when issuing convertible bond to raise fund?

1b. What are the advantages and disadvantages of issuing convertible bonds?

How much will she have to invest today : If Tracy can invest in a fund that pays 6.60 percent annually, how much will she have to invest today?

Calculate the default risk premium : Consider a coupon bond with a $100 face value and a coupon payment equal to 3% of the face value per year.

Calculate geraldines net income from her business : Geraldine is an accrual basis taxpayer who has the following transactions during the current calendar tax year.

Briefly explain how the reasoning would differ or stay same : Briefly explain how the reasoning would differ or stay the same if this had been an exercise focusing on moral hazard.

What are the advantages of issuing convertible bonds : What factors need to be considered when issuing convertible bond to raise fund?

Which dcf valuation method would you opt for : Which DCF valuation method would you opt for, the WACC or the APV method? Motivate your answer.

Compute the threshold w which the lender is unwilling : Consider a project that needs a fixed investment. Compute the threshold w* below which the lender is unwilling to finance the project.

Comment on the main lesson drawn from the given exercise : Comment on the main lesson drawn from this exercise with respect to the use of collateral to facilitate credit access.

Compute the threshold interest rate that lender can charge : Compute the threshold interest rate that the lender can charge to induce an adequate effort level from the borrower.