Debt Flashcards
1
Q
Conversion Ratio
A
PAR($1000)/ conversion price
2
Q
Parity(Equal) price of bond
A
conversion ratio x current stock price
3
Q
Trading at parity
A
Conversion ratio / current stock price
Aka
(PAR$1000/convertible price)*current stock
4
Q
YTM
A
(Annual income + CAP gains/loss)/bond avg price
5
Q
Call premium
A
Callable price - par
6
Q
Nominal yield
A
Annual income / bond par value
7
Q
Current yield
A
Annual income / mkt price of bond
Price today and held for one year
8
Q
When price of bond increases
A
YTM YTC CY NY all decrease
Moves opposite of bond price
9
Q
Debt service coverage
A
Pledged revenues / debt service
