Unit 5 Corporate Bonds Flashcards
1
Q
A capital appreciation bond is a ___________ bond.
A
zero-coupon
2
Q
In stable interest rates environments, the price of convertible bonds are…
A
more volatile than other debt
3
Q
Conversion value =
A
conversion ratio x stock price
4
Q
Arbitrage opportunity exists when a convertible security’s price is ______ than the current parity price of the common stock.
A
less
5
Q
Equipment certificates
A
issued by carriers such as railroads, airlines and shippers
