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Generally, convertible bonds come at a lower cost to the issuer.

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13y ago

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Are all bonds convertible or are there special convertible bonds?

Not all bonds are convertible, in fact most are not. A convertible bond is a special bond with an option to exchange the bond for company stock under certain conditions.


Describe the differences that exist in current accounting for original proceeds of the issuance of convertible bonds and of debt instruments with separate warrants to purchase common stock?

Companies need to finance their business plans. In order to finance them, the company can either go for debt or issue shares or issue bonds to get the required investment. Debt can be in the form of bonds.


Bonds are not always categorized as?

callable or convertible.


What is the purpose of convertible bonds?

A convertible bond is issued by financial institutions. It differs from standard bonds in that it can be converted into company stock. The purpose of this is to provide additional security for the customer.


What has the author Thomas C Noddings written?

Thomas C. Noddings has written: 'Listed call options' 'Low-risk strategies for the high-performance investor' -- subject(s): Convertible bonds 'The Dow Jones-Irwin guide to convertible securities' -- subject(s): Convertible bonds, Convertible preferred stocks, Convertible securities, Stock warrants


Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.


What is the difference between a convertible bond and a convertible debenture?

A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.


Can you supply information on barclay reverse convertible bonds?

Barclay's bonds as follows 06738GZ86 0678RJR8 0678RRG3 0678RUT1


Do Convertible bonds lack a call feature?

NO, THEY ALWAYS have a call feature.


What are the types of banking convertible securities?

money market instrument , and bonds


Do Convertible bonds pay dividends?

Convertible bonds do not pay dividends; instead, they typically pay interest, which is a fixed return to investors. These bonds can be converted into a predetermined number of shares of the issuing company's stock, allowing bondholders to benefit from potential appreciation in the company's equity. While common stocks may pay dividends, the interest from convertible bonds is generally considered a more stable income source.


What stakeholder group might be harmed when a firm issues convertible bonds?

When a firm issues convertible bonds, existing shareholders may be harmed as their ownership stake could be diluted if the bonds are converted into equity. This dilution can reduce the value of their shares and potentially impact their voting power within the company. Additionally, if the convertible bonds are converted at a time when the company's stock price is low, shareholders might feel particularly disadvantaged.