How much is the bonds downside risk

Assignment Help Finance Basics

Reference no: EM133332171

Question: A convertible bond can be converted into 32 common shares. If the bond investor converts the bond to shares today, she will realize a bond value of $960. The conversion premium per share in the market is $2.4. It is also known that the bond will have a value of $950 if the conversion option is not exercised. How much is the bond's downside risk?

Reference no: EM133332171

Questions Cloud

What online communication competence mean : What does "online communication competence" mean? Be sure to address the message, audience, and behaviors in your response.

Hypothetical-deductive reasoning : Describe a real-life example of someone you know (or a celebrity) using hypothetical-deductive reasoning. Make sure you explain why this illustrates this concep

Participate in the literacy interventions : Compose an email to the families of each of the students selected to participate in the literacy interventions.

Mention importance of planning for emergencies : Mention the importance of planning for emergencies.

How much is the bonds downside risk : It is also known that the bond will have a value of $950 if the conversion option is not exercised. How much is the bond's downside risk?

Explained by maslow theory : Analyze the reason why people join groups, as explained by Maslow's theory (provide examples and explain).

How much would you have after the 30 years : How much would you have after the 30 years, if in addition to the $100,000 contributed today, you also invest $10,000 a year at the beginning of every year

Justify how communication theories : Justify how communication theories could be applied to the scenario, and clearly identify specific theories in your explanation.

Explain the basis of delmonds claim : Explain the basis of Delmond's claim and what will likely occur in Delmond's attempt to assert it. Delmond Insurance decides to seek reimbursement

User Account

All Pages