Assertion: convertible bond's option | /r/CapableOf | convert the bond
Facets:
value: to stock
type: TRANSITIVE-OBJECT
value: at rate
type: MANNER
value: into common stock
type: OTHER
value: into shares
type: OTHER
value: into equity
type: OTHER
value: at a specified price
type: MANNER
value: to equity
type: TRANSITIVE-OBJECT
value: into shares in the business
type: TRANSITIVE-OBJECT
value: at designated times
type: TEMPORAL
value: into shares of the issuer
type: TRANSITIVE-OBJECT
value: to shares
type: TRANSITIVE-OBJECT
value: at the maturity date
type: TEMPORAL
value: at a formula
type: MANNER
value: at their discretion
type: MANNER
Source sentences:
text: However, convertible bonds tend to offer a lower coupon rate or rate of return in exchange for the value of the option to convert the bond into common stock.
text: The difference between the convertible bond price and its bond ﬂoor is the risk premium, which is the value that the market places on the option to convert a bond to shares of the underlying stock.
text: Plain vanilla convertibles act as those described above, with the investor having the option to convert their bonds into equity at a specified price at designated times.
text: And unlike regular bonds, a CB gives an investor the option to convert his bond into common stock.
text: Due to the option to convert the bond into common stock, they offer a lower coupon rate.
text: Reverse convertible bonds give the issuer an option to either buy back the bond in cash or convert the bond to the equity at a predetermined conversion price and rate at the maturity date.
text: A convertible bond is a bond that gives the bond-holder an option to convert the bond to a specified number of shares of the company’s common stock at a pre-determined conversion date.
text: Convertible bonds give investors the option to convert the bond to common stock at their discretion.
text: To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt.
text: This is the most common form of convertible debt wherein at the time of maturity the bondholder has the option to convert the bond into equity based on the conversion price, ratio and the market price or alternatively may choose to redeem the value of the debt.
text: It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.
text: Convertible bonds differ from corporate bonds in that they include an option to convert the bond at a specific price (the “conversion price”) into the company’s common stock.
text: A convertible note, usually in the form of a bond, gives you the option to convert the bond into shares when you choose.
text: Although a CB typically has a coupon rate lower than that of similar, non-convertible debt, the instrument carries additional value through the option to convert the bond to stock, and thereby participate in further growth in the company’s equity value.
text: To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt.
text: To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt.
text: Reverse convertibles give the issuer the option to buy back the bond in cash or convert the bond to equity at a predetermined price and rate at the maturity date.
text: Reverse convertibles give the issuer the option to buy back the bond in cash or convert the bond to equity at a predetermined price and rate at the maturity date.
text: Thus the option to convert the bond to stock was not as valuable as it would be in a strong year for stocks.
text: A convertible bond is in effect a normal bond with a call option attached, the owner receives an interest payment (coupon payment) until maturity, and then has the option to convert the bond into shares in the business at a pre-agreed rate.
text: A convertible bond is in effect a normal bond with a call option attached, the owner receives an interest payment (coupon payment) until maturity, and then has the option to convert the bond into shares in the business at a pre-agreed rate.
text: Ex: Imagine a public limited company is issuing convertible bond for Rs.100 each with an option to convert the bond-to-shares at a formula 10:1, agreeing to give interest of 5% annually.
text: The option to convert the bond into shares allows the company to pay less interest to the bondholder.
text: The option to convert the bond to stock makes the security more attractive, and allows the issuing company to pay less interest (or dividends, in the case of preferred shares).
text: It also allows the option to convert the bond into stock .
text: The difference between the convertible bond price and its bond ﬂoor is the risk premium, which can be viewed as the value that the market places on the option to convert a bond to shares of the underlying stock.
text: A convertible bond gives the holder the option to convert bond into shares of the issuer.
text: If the price of the stock is expected to increase, the bondholder will exercise their option to convert the bonds into equity.
text: In the case of reversible convertible bonds, the company has the option to convert the bonds into equity shares or retain it in the form of debt unlike the vanilla convertible bonds wherein the bondholder has the option to convert.
text: A company may add to the attractiveness of its bonds by giving the bondholders the option to convert the bonds to shares of the issuer’s common stock.
text: This is because the option to convert the bonds into ordinary shares is set at a fixed price, and the holder of the bonds therefore benefits from any increase in the market value of the ordinary shares above that fixed conversion price.
text: If the companyâs share price fails to rise above the returns offered by the convertible bonds, an investor would not have an option to convert these bonds.
text: Plain vanilla convertibles act as those described above, with the investor having the option to convert their bonds into equity at a specified price at designated times.