Corp Debt

Question 1

corporate debts have to register in what form?

Answer 1

book entry

Question 2

secured corporate bonds are

Answer 2

equipment trust certs, mortgage bonds, collateral trust certs

Question 3

mortgage bond

Answer 3

backed by a lien on real estate

Question 4

ETC

Answer 4

backed by equipment (ex: airline, truck, trailer)

Question 5

collateral trust cert

Answer 5

backed up by portfolio securities that is given to bondholders in case of default

Question 6

corporate unsecured bonds are

Answer 6

commercial paper, debenture, subordinate debenture, guaranteed bonds, income/adjustment bonds

Question 7

priority in liquidation

Answer 7

secured, unpaid wage/tax, debentures, subordinate, preferred, common

Question 8

convertible corporate debt: conversion ratio formula

Answer 8

par / conversion price

Question 9

convertible corp debt: parity price of bond

Answer 9

conversion ratio / Mkt price of common

Question 10

convertible corp debt: parity price of stock

Answer 10

mkt price / ratio

Question 11

arbitrage

Answer 11

when theres no profit from trading because stock and bond parity dont equal