Describe reasons a corporation would sell convertible bonds

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Question -

Describe three reasons a corporation would sell convertible bonds.

What are the differences between a debenture, a mortgage bond, and a subordinated debenture?

What are the differences between a registered bond, a registered coupon bond, a bearer bond, and a zero-coupon bond?

What is the issue price for a $500,000, 5 year, semi annual bond with stated rate at 4% when the market rate is 5%. What would you pay assuming you purchased $10,000 of this bond at the date of issue?

What is the market value for a bond with a face value of $1,000 and a newspaper quotation of 77 1/4?

How can an investor make money using the buy and hold technique?

How would you define: (1) a blue-chip stock, (2) an income stock, (3) a growth stock, (4) a cyclical stock, (5) a defensive stock, (6) a penny stock, (7) a large-cap stock, and (8) a small-cap stock?

Jennifer and Jeff Cooke own 220 shares of Petro-Canada common stock. Petro-Canada's quarterly dividend is $10 per share. What is the amount of the dividend check that the Cooke couple will receive for this quarter?

A sports equipment company issued a $3 cumulative preferred stock issue. In 2000, the firm's board of directors voted to omit dividends for both the company's common and preferred stock issues. Also, assume that the corporation's board of directors votes to pay dividends in 2001.

a. How much did the preferred shareholders receive in 2000?

b. How much did the common shareholders receive in 2000?

c. How much did the preferred shareholders receive in 2001?

What is the issue price for a $500,000, 5 year, semi annual bond with stated rate at 4% when the market rate is 5%. What would you pay assuming you purchased $10,000 of this bond at the date of issue?

Sidney took a $200 cash advance by using cheques linked to her credit card account. The bank charges a 2-percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. What was the cash advance fee? What was the interest for one month at an 18-percent APR? What was the total amount she paid? What if she had made the purchase with her credit card (assuming no over credit limit) and paid the bill in full promptly?

You have been pricing a compact disc player in several stores. Three stores have the exact same price of $300. Each of these stores charges 18 percent APR, has a 30-day free ride, and sends out bills on the first of the month. On further investigation, you find that Store A calculates the finance charge by using the average daily balance method, that Store B uses the adjusted balance method, and that Store C uses the previous balance method. Assume that you purchased the disc player on May 5 and that you made a $100 payment on June 15. What will the finance charge be for June if you made your purchase from Store A? from Store B? from Store C?

After researching a software company's common stock, Sarah Jackson is convinced that the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares. At the time of the sale, a share of common stock had a value of $35. Six months later, the stocks was selling for $23 a share and Sarah instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $120. What is her profit for this short transaction?

Reference no: EM132779015

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