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					Pricing a convertible bond

Convertible Bond = Investment Value + Call Value
Risk Free Rate                                               2.50%
Spread                                                       2.00%
Maturity                                                         3
Investment Value
Coupon                                                           3
                                                         pv
                                                     3    2.870813
                                                     3      2.74719
                                                     3      2.62889
                                                   100    87.62966
                                                          95.87655
      Dividend               3.89%
     Stock Price              16.4
   Stock Volatility         69.18%
     Face Value             100.00
       Coupon                3.25%
      Risk Free              3.20%
    Credit Spread            3.00%
         R+S                 6.20%
   Maturity (Years)            3
     Strike Price           14.776

  Investment Value           Year         Coupon   Principal            C+P
                              1            3.25        0                3.25
                              2            3.25        0                3.25
                              3            3.25       100             103.25
                                                               Bond Investment Value
           Call Equity Value
          D1               0.493824896
          D2               -0.704407852
      Call Value           6.829589821

Total Value of Convert   98.97329252
    PV
  3.060
  2.882
 86.202
92.143703

				
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