User Account

All Pages

Explain why you included the instrument in your portfolio

Assignment Help Finance Basics
Reference no: EM131117557

Discussion Post Derivatives

Wwe discuss the merging of debt and options. In addition to companies offering convertible bonds, they also offer other bonds linked to options or equity-linked notes. Assume you are a portfolio/risk manager and your company just issued one such instrument bond linked to options from the list below. Explain why you included the instrument in your portfolio.

• Debt Exchangeable for Common Stock (DECS).
• Premium Equity Participating Share (PEPS).
• Preferred Equity Redeemable for Common Stock (PERCS).

Reference no: EM131117557

Questions Cloud

What is the yield-to-maturity : A $20,000 face value STRIPS is currently quoted at 38.642 and has 8 years to maturity. What is the yield-to-maturity? 6.26 percent 6.30 percent 12.25 percent 12.65 percent 12.83 percent
Write an equation for the problem : write an equation for the problem. then use the equation to answer the question.
Interest of justice an office : In the interest of justice an office exists constitutionally in Kenya to ensure that complaints from the members of the public against maladministration of public authorities are investigated to the extent of resolution.
Explain the motivation theory-abraham : Explain the Motivation Theory-Abraham H. Maslow's Hierarchy of Needs with suitable diagram and examples. Validate the theory by citing 2 notable characters or personality of your choice.
Explain why you included the instrument in your portfolio : Assume you are a portfolio/risk manager and your company just issued one such instrument bond linked to options from the list below. Explain why you included the instrument in your portfolio.
Making annual coupon payments and all selling at face value : Consider three bonds with 5.2% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has matur..
Demanding and receiving overtime pay : Some experts are concerned that if American white-collar workers increase their compensation by demanding and receiving overtime pay, then offshore labor will gain an even larger cost advantage, hurting U.S. companies. Do you agree or disagree?
Compute the mean and median : Do you agree that "if two events are mutually exclusive then these two events will be independent"? Why? Provide one business-related example each, with explanation, for mutually exclusive and independent events.
To bart perkins of computerworld : Some may argue that an ineffective IT organization could be outsourced, so sacrificing the ducks to save the rest of the IT function was best for the better performing employees. Do you agree?

Reviews

Write a Review

Finance Basics Questions & Answers

  What should be the hedge ratio?

What should be the hedge ratio?

  Determine the annualised cost of the loan

Determine the annualised cost of the loan for each of the following outcomes, assuming interest is based on 90 days and a 365 day year

  The day of the announcement

JBC Corp declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet  JBC Corp stock declined by 3% the day of the announcement.  RBG Corp declared a dividend of $2 per share, which was the same as the prior year, and i..

  Membership agreement between customer

Membership agreement between customer and Sam's Club

  Their yeild to maturity is 9 based on semiannual compunding

you have an outstanding bond for 1000 par value and they matuer in 5 years. their yeild to maturity is 9 based on

  What value should be assigned to this machine

The firm is considering using this machine in a new project. If it does so, what value should be assigned to this machine and included in the initial costs of the new project?

  Calculating multiple cash flows for a year

Calculating multiple cash flows for a year and the amount of the annuity shown below is the amount of each individual cash flow

  How many yen would you receive for every shekel exchanged

A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 3.50 Israeli shekels or for 104.00 Japanese yen. What is the cross-ex-change rate between the yen and the shekel; that is, how many yen would you receive ..

  Explain importance of informed financial decisions

Summarize and describe each revenue source and which fund the source should fall under or be tracked in. Additionally, address the following: Importance of informed financial decisions

  Lucas will receive 7100 8700 and 12500 each year starting

lucas will receive 7100 8700 and 12500 each year starting at the end of year one. what is the future value of these

  Capital structure and eps

How can a corporation adjust their capital structure to enhance their EPS (Earnings per share)? Find out an example of a corporation that recently reproted their EPS.

  What are the effects of coupon rate to the sensitivity

What are the effects of coupon rate to the sensitivity of a bond price and to changes in interest rates?

Free Assignment Quote

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

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd