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The Conversion Premium is the amount by which the current price of a convertible security exceeds the current market value of the stock into which it may be converted.
For example, a bond with a price of $110, convertible into 20 units of stock, trading at $5.10 (totalling $102) would have a conversion premium of $8.
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What does it mean when bonds are issued at a discount?
When a bond is issued at a discount, it is issued for a price less than par (face value). For example, if you were to purchase a bond with a face value of one thousand dollars for nine-hundred and eighty dollars, you bought the bonds at a discount because you purchased it for less than the bond will pay out at maturity. To calculate the 98, you would divide the purchase price by the par value.
What does it mean went a bond is issued at a premium?
When a bond is issued at a premium, it means that the bond's selling price is higher than its face value or par value. This typically occurs when the bond’s coupon rate is higher than the prevailing market interest rates, making it more attractive to investors. As a result, investors are willing to pay more for the bond to receive the higher interest payments. The premium is amortized over the life of the bond and reduces the effective yield for the investor.
What does redeem a bond at a premium mean?
Redeeming a bond at a premium means that the issuer repays the bondholder an amount greater than the bond's face value upon maturity or early redemption. This typically occurs when interest rates have fallen, making the bond's higher coupon rate more attractive. Consequently, the issuer may offer a premium to incentivize bondholders to sell or redeem the bond before maturity. This practice can impact the overall yield and return for investors.
Sweat shares mean?
Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.
Does insurance premium mean monthly?
No. The premium is the price you pay for the coverage. Depending on your insurance company, the premium may be paid all at once or in payments.
What does it mean when bonds are issued at premium?
The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity.
What does it mean when bonds are issued at a discount?
When a bond is issued at a discount, it is issued for a price less than par (face value). For example, if you were to purchase a bond with a face value of one thousand dollars for nine-hundred and eighty dollars, you bought the bonds at a discount because you purchased it for less than the bond will pay out at maturity. To calculate the 98, you would divide the purchase price by the par value.
What does it mean went a bond is issued at a premium?
When a bond is issued at a premium, it means that the bond's selling price is higher than its face value or par value. This typically occurs when the bond’s coupon rate is higher than the prevailing market interest rates, making it more attractive to investors. As a result, investors are willing to pay more for the bond to receive the higher interest payments. The premium is amortized over the life of the bond and reduces the effective yield for the investor.
What does it mean for a bond to be issued at 102?
When a bond is issued at 102, it means that the bond is being sold at 102% of its face value. For example, if the face value of the bond is $1,000, it would be sold for $1,020. This premium indicates that investors are willing to pay more than the face value, often due to the bond's higher interest rate compared to current market rates or its perceived credit quality.
If a bench warrant is issued what does no bond on it mean?
is a bench warrant a felony
If you have a 10 percent coupon bond with 19 years left to maturity the bonds make annual payments and currently sells for 1102.05 what is the YTM?
A bond that pays 1 coupon(s) of 10% per year, that has a market value of $1,102.05, and that matures in 19 years will have a yield to maturity of 8.87%. What does it mean? Well, bond investors don't just buy only newly issued bonds (on the primary market) but can also buy previously issued bonds from other investors (on the secondary market). Depending on whether a bond on the secondary market is bought at a discount or premium, the actual rate of return can be greater or lower than the quoted annual coupon rate. This is why bond investors need to look at YTM, which measures the bond's yield from the day the investor buys it to the day it expires, when the principal is paid to the bondholder.
What does redeem a bond at a premium mean?
Redeeming a bond at a premium means that the issuer repays the bondholder an amount greater than the bond's face value upon maturity or early redemption. This typically occurs when interest rates have fallen, making the bond's higher coupon rate more attractive. Consequently, the issuer may offer a premium to incentivize bondholders to sell or redeem the bond before maturity. This practice can impact the overall yield and return for investors.
Sweat shares mean?
Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.
What does ceded insurance premium mean?
What does ceded premium mean
Does off mean discount?
Yes it normally does mean a percentage discount.
What does the term closed bond mean?
A closed bond refers to a type of bond issuance where the company or entity offering the bond limits the number of bonds issued. Once the predetermined number of bonds is sold, no additional bonds will be offered for sale, hence the term "closed." This is in contrast to an open bond issuance, where bonds are continuously available for purchase.
What do the terms SC ISSUED INIT and DOCI mean on court papers?
DOCI means "Document Issued" SC means "Statement of Charges" Other terms you'll find on court documents include: CMIT, which means "Committed" or "Incarcerated" RELS, which means "Released" (from custody) or BOND, which means "Bond Posted" to get out of jail.
