Forced conversion refers to the corporation calling a convertible bond. This is ideal when the market price of the stock is above the conversion price by more than a small percentage.
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Q17: A convertible bond has two separate sources
Q18: The conversion premium represents the dollar difference
Q19: Conversion premiums are found by subtracting the
Q20: Conversion premiums are influenced heavily by expectations
Q21: Because a warrant is dependent on the
Q23: "Diluted earnings per share" must assume the
Q24: A call provision is commonly used by
Q25: The interest rate on convertible bonds is
Q26: "Basic earnings per share" does not include
Q27: Warrants are often attached to debt securities
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