quiz_5s08

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

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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.
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This note was uploaded on 02/09/2010 for the course FIN 459 taught by Professor Yildary during the Spring '07 term at Syracuse.

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

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