Bài Đánh Giá Bu I 9 - Xem L I Bài Làm
Bài Đánh Giá Bu I 9 - Xem L I Bài Làm
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chứng khoán chuyển đổi Bài đánh giá buổi 9
Alicia owns a $1,000 face value bond that can be converted into 20 shares of AB Limited stock. Which one of
the following terms refers to these 20 shares?
a. conversion price
b. conversion value
d. conversion premium
e. conversion ratio
Latetia owns a convertible bond. Which one of the following terms would describe the value of this bond if it
were not convertible?
a. market value
b. inverted value
c. conversion value
d. conversion premium
You own nine convertible bonds. These bonds have a 7 percent coupon, a $1,000 face value, and mature in
6 years. The bonds are convertible into shares of common stock at a conversion price of $25. How many
shares of stock will you receive if you convert all of your bonds?
a. 350
b. 400
c. 300
e. 285
Jeff owns a $1,000 face value bond. He can exchange that bond for 25 shares of KNJ stock at any time within
the next 2 years. What type of bond does Jeff own?
a. warranted
b. callable
c. convertible
d. junk
e. secured
a. I and IV only
b. I only
d. II only
e. II and IV only
A bond with 10 detachable warrants has just been offered for sale at $1,000. The bond matures in 15 years
and has an annual coupon of $80. Each warrant gives the owner the right to purchase two shares of stock in
the company at $14 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 11
percent. What is the value of one warrant?
a. $13.58
b. $7.00
c. $16.67
d. $21.57
e. $14.00
A $1,000 convertible debenture has a conversion price for common stock of $85 per share. The common
stock is selling at $92 a share. What is the conversion value of this bond?
a. $1,092.00
b. $923.91
d. $1,000.00
e. $920.00
Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25
shares of DJ Industries stock at a price of $32 a share if she exercises that right within the next 12 months.
What is this security called that Amy has been given?
a. convertible bond
b. spread
c. put
d. straddle
e. warrant
Lucinda owns a convertible bond that matures in six years. The bond has a 9 percent coupon and pays
interest annually. The face value of the bond is $1,000 and the conversion price is $22. Similar bonds have a
market return of 8.75 percent. The current price of the stock is $21.60 per share. What is the conversion
value of this bond?
a. $848.40
c. $942.11
d. $835.60
e. $1,000.00
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