Exam 23: Swap Contracts,convertible Securities,and Other Embedded Derivatives

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Which of the following is not true about interest rate swaps?

(Multiple Choice)
4.9/5
(37)

Exhibit 23.5 Use the Information Below for the Following Problem(S) Exclusive Industries has debentures outstanding (par value $1,000.00) convertible into exclusive's common stock at $30. The coupon rate is 11% payable semiannually and they mature in 10 years. -Refer to Exhibit 23.5.Calculate the conversion value if the stock price is $24.00 per share.

(Multiple Choice)
4.9/5
(48)

Exhibit 23.1 Use the Information Below for the Following Problem(S) A company buys an interest rate cap that pays the difference between LIBOR and 8% if LIBOR exceeds 8%. Current LIBOR is 7%. The amount of the option is $2,500,000, and the settlement is every 6 months. Assume a 360 day year. -Refer to Exhibit 23.1.Find the payoff if LIBOR closes at 8.2%.

(Multiple Choice)
4.9/5
(51)

A real option is a reference to

(Multiple Choice)
4.9/5
(40)

The investment value of a convertible bond is the price which it would be expected to sell as a straight debt instrument.

(True/False)
4.8/5
(32)

In convertible bonds,the value of the common stock price upon immediate conversion is the

(Multiple Choice)
4.8/5
(43)

An example of a commodity-linked fixed income security is a

(Multiple Choice)
4.8/5
(30)

All of the following are normal characteristics of a convertible bond,except

(Multiple Choice)
4.9/5
(36)

The conversion price parity for a convertible bond is defined as:

(Multiple Choice)
4.9/5
(31)
Showing 81 - 89 of 89
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)