Why the conversion price increases over time

Assignment Help Finance Basics

Reference no: EM131781375

Question: A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero-coupon instrument that is convertible into the common stock of the issuer. The conversion ratio is fixed for the entire life of the note. If investors wish to convert to the shares of the issuer, they must exchange the LYON for the stock. As a result, the conversion price increases over time. Why?

Reference no: EM131781375

Questions Cloud

About the different elements of benchmarking and auditing : Think about the different elements of benchmarking and auditing from our informal discussions semester that make these two disciplines distinct from each other

Explores the cultural uses of photography in western society : Explores the cultural uses of photography or photographs in Western society during the 19th, 20th, or 21st century.

Bank deposits and other liabilities : Use the following categorization table to identify transaction and nontransaction accounts.

Office interiors company has developed a new : The Office Interiors Company has developed a new, modern office chair. Initial sales Forecasts are for 50 chairs per day.

Why the conversion price increases over time : A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero-coupon instrument that is convertible into the common stock of the issuer.

Luxury hotel adjacent to the shack : Sart Bimpson, an economics student, believes that a beer sold by one particular shack on the beach is completely different from an identical beer.

Price of product : Suppose egg producers succeed in permanently raising the price of their product by 15%, and as a result the quantity demanded falls by 15%.

What measures portray risk reduction and loss reduction : Given the information presented, what measures portray risk reduction and loss reduction in the Porth case study?

What effect would this have on the investment account : Poster Inc. owns 35 percent of Elliott Corporation. What effect would this have on the investment account and net income, respectively

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages