Describe the terms of the issued convertible bond

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Question:

1. Write a case study of a firm that has issued convertible securities (preferred or bond). Discuss why the firm issued the convertible securities. Discuss problems that firm had in issuing the convertible securities. Write about how the investment bankers marketed the security and what type of investors bought into the deal. Write about any special considerations that investment bankers and underwriters had when issuing convertible securities.

2. Review a convertible bond issued. Describe the terms of the issued convertible bond, including when was it issued, years to maturity, whether the bond is convertible, the price that the bond is currently selling at, and the number of shares that bond converts to. Calculate the current conversion value for the bond and whether the conversion option is in or out of the money. Provide the conversion parity price for the stock. Would it make sense for the investor to convert the bond? Provide a recommendation as to whether the investor should buy or sell this convertible bond and why.

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Reference no: EM13835024

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