Discussion Post: Investment
• What differentiates convertible bonds from other bonds?
• How is the value of a convertible bond in terms of stock determined? What effect does this conversion value have on the price of the bond?
• Why may convertible bonds be called by the firm? When are these bonds most likely to be called?
• Why are convertible bonds less risky than stock but usually more risky than non-convertible bonds?
• What advantages do convertible securities offer investors? What are the risks associated with these investments?
• Why may an investor prefer a debenture with a put feature in preference to a bond with a call feature?
• If you expected a common stock's price to appreciate over a period of time, would you prefer to invest in a put bond, a callable convertible bond, or a convertible- exchange-able preferred stock issued by the firm?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.