{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

quiz_5s08

quiz_5s08 - FIN459-659 Introduction to Derivatives Spring...

This preview shows pages 1–2. Sign up to view the full content.

FIN459-659 Introduction to Derivatives Spring 08 Quiz#5 You have the entire class period to complete the quiz. The quiz is open book, open notes, open calculator. NO computer, NO consulting with other students is allowed. You will have to use the last page of this quiz to help you solve the last problem which will account for 20% of your total quiz grade. Good luck! 1. A convertible bond is a. A bond that can be called by the issuer at any time. b. A bond that pays interest in shares of the common stock f the issuer. c. A bond whose face value can be converted into shares of the common stock of the issuer. d. None of the above. 2. The investment value of a convertible bond is a. The price of the convertible. b. The face value of the bond. c. The parity value of the convertible. d. None of the above. 3. The conversion price is a. The price of the convertible bond. b. The number of shares exchangeable per \$1000 face value of the bond. c. The implied common stock price per share that a convertible holder will get if he converts. d. None of the above. 4. The option value of a convertible bond is a. The present value of all coupon and face value payments.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

quiz_5s08 - FIN459-659 Introduction to Derivatives Spring...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online