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The straight value of a convertible bond is nothing but the value of a non-convertible bond having same characteristics. For example, assume that a company has two types of bond issues outstanding in the market having a same coupon rate: a convertible bond issue and a non-convertible bond issue. The market price of the convertible and non-convertible bonds is Rs.190 and Rs.150 respectively. Thus, the straight value of the convertible bond is Rs.150. Investors are willing to pay a premium of Rs.40 - the privilege of being able to convert the bond into common shares.
Rationale for Mergers Many of the motives behind mergers of firms are discussed hereunder: Growth Growth is the most general and important motive for mergers. Merging f
The relative change in the yield for each treasury maturity is known as a shift in the yield curve. When the change in the yield for all the maturities is same, t
Various Types of Strategies Different types of hedge fund strategies are discussed as follows: Relative Value of Strategies: Relative value strategies are also known as no
Q. Credit control - account receivable management? Once credit has been established it is important to review outstanding accounts on a regular basis so overdue accounts can be
A pharmaceutical company, named "XYZ", plans to deliver trials to three different clinics (C1, C2, and C3). The trials are used for the emergency treatments so XYZ must fulfill all
Journal articles review reviewed
Bonds issued by the government are termed as treasury bonds. For example, dated securities issued by the government. These bonds are normally issued for longer ma
State about the Manufacturing overseas or exporting Dyson (appliances manufacturer) relocated UK production to Malaysia in 2002 though still retained its head office within the
Functions of Financial Management Traditional function of financial management has been limiting the role of finance toraising and administrating of funds required by the compa
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