LT Lecture 7 - The Many Different Types of Debt Flashcards
1
Q
Terminologies:
1) Foreign Bond
2) Euro Bond
3) Global Bond
A
2
Q
Terminologies:
1) Debentures
2) Notes
3) Face value
4) Coupon
5) Yield
6) Accrued Interest
7) Actual (dirty) price
A
3
Q
Unsecured vs secured
A
4
Q
Seniority
A
5
Q
Repayment Provisions
1) Sinking funds
2) Pay in kind (PIK)
A
6
Q
Debt Covenants
1) Positive covenants
2) Negative covenants
A
7
Q
Bonds with Options
A
8
Q
Callable Bonds
A
9
Q
Puttable Bond
A
10
Q
Convertible Bonds
A
11
Q
Why issue convertibles
A
12
Q
Bond-Warrant Package
A
13
Q
Other Bonds with options
A
14
Q
Straight Bond
A
15
Q
Conversion value graph
A
16
Q
Convertible graph
A
17
Q
Valuing a convertible bond
A
18
Q
Some qualitative features
(Revise question)
A
19
Q
Payoff to original bondholder
A
20
Q
Payoff to equityholders
A
21
Q
Stock Dilution
A
22
Q
When is conversion optimal?
A
