0
Why does convertible debt carry a lower coupon than straight debt?
Wiki User
∙ 7y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Why issue convertible bonds?
Generally, convertible bonds come at a lower cost to the issuer.
Is the premium steady or lower in a straight life policy?
"Straight" = "steady" here.
What is a Zero coupon bond?
A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond.
Distinguish between deep discount bond and zero coupon bond?
the main difference between deep discount bond and zero coupon bond is that in case of zero coupon bond no int is payable periodically while in case of deep discount bond int is payable periodically at very lower rate say 2% per annum
When the market rate of return for a particular bond is much less than its coupon rate the bond is selling at?
If the current interest rate is lower than the coupon rate, a bond will be priced at a premium. For example, a bond originally issued at par with a 5% coupon would initially yield 5% to an investor. If market rates subsequently dropped to 3%, the bond would be selling at a premium to reflect the lower interest rate. In this example, the original bond sold for $1,000 and had a coupon rate of 5% to yield $50 per year in interest. If interest rates dropped to 3%, the price of the bond would increase to approximately $1,667. A purchaser of the bond would still receive $50 per year in interest which would provide an annual yield of 3% ($50/$1,667 = 3.0%).
Why issue convertible bonds?
Generally, convertible bonds come at a lower cost to the issuer.
A lower coupon bond has a higher relative price change than a higher coupon bond when?
YTM changes YTM changes
Which of these would not be an example of misuse of resources?
using a coupon to lower the cost of a product
Where is the AC water drain on a 2000 Chrysler Sebring convertible?
It is on the lower passenger side of the firewall.
Where is the thermostat on a 1999 Chrysler Sebring 2.5L convertible?
It is where the lower radiator hose hooks to the engine.
what are coupon codes and where can I use them ?
Coupon codes are codes you apply on a purchase to lower the prices when checking out on a website. You can use them at all sorts of restarants, retail stores, etc.
How do you use a webkinz coupon?
Whenever your checking out just pull your coupon onto the item your buying and your computer will automatically lower the price to your coupons value. Hope this helped! :)
Is the premium steady or lower in a straight life policy?
"Straight" = "steady" here.
Where is the button to lower the top of a 1998 mustang convertible?
On the console , in front of the armrest ( according to the owners manual )
Where do you get a job on Neopets?
You'll have to get the job coupons. But I wouldn't advise you to buy one because:1. It's challenging2. It's expensive (e.g. Green job coupon 60000 NP)3. You can't use it again4. Once you use a coupon (e.g. Gold Brightvale coupon) it will later be a coupon 1 step lower (e.g. Gold Brightvale coupon ----- Gold job coupon)
Which do you prefer from BMW's M Series; the coupe, the sedan or the convertible?
I prefer the convertible model for I love to lower my roof and be able to drive around the city with the breeze. The coupe is very sleek design tho.
Why does the light blink when trying to lower the convertible top on your 230 SLK?
To keep clear so you dont get injured.
