Cost of convertible debt Flashcards
1
Q
How to calculate convertible debt
A
Same as redeemable debt, but the repayment is either repayment or redemption.
Redemption will be at premium or nominal
2
Q
Conversion of shares
A
Take the amount of shares, multiply by their worth and multiply by the growth rate squared by number of years e.g.
TYU15 - 2041.07^5