Free Essay

Convertible Bonds (Spanish)

In: Business and Management

Submitted By bautista037
Words 391
Pages 2
Bonos Convertibles
Permite a los inversores convertir sus inversiones fijas en cantidades pre-determinadas en acciones comunes. Incluye los bonos convertibles se convierte en capital a través de una nueva emisión de acciones, se amplía. Los bonos canjeables se convierten en capital sin una nueva emisión de acciones.
Debido a su convertibilidad, permite combinar deuda con capital, por lo que se denominan híbridos.
Valor Principal: cantidad de dinero que la empresa emisora presta.
Valor Nominal: Cantidad que debe de re.pagarse al inversor en la maduración del bono. * Los pagos de interés fijosPriced at par
Cupón zero: No hacen pagos intermedios y su precio está debajo del valor nominal o a descuento.
La diferencia entre el valor principal y el valor nominal de un bono descontado es lo que se paga al final de la vida del bono.
Madurez: La fecha en que la deuda tiene que ser re.pagada, así como la fecha en que el valor nominal será pagada. Anteriormente los bonos convertibles tenían una madurez de 20 años o más, sin embargo, ahora son a 7 años, máximos a 10 años.
Cupones: Son pagados para compensar el riesgo a los inversores. Si un bono tenía su precio a la par, los pagos del cupón era la principal fuente del retorno de los bonos.
Desde que un bono convertible les proporcionaba valor a los inversores como “opciones”, las compañías generalmente emitían convertibles con cupones más bajos como si tuviesen deuda.
La opción convertible significa que el bono fue cambiado por un cierto número de acciones comunes de la empresa a precio fijo. Esta opción era válida para inversionistas después de concluir con la vida del bono convertible. El valor de un bono convertible no solo depende del riesgo crediticio y las tasas de intereses del mercado, sino también del precio de la acción, de la ganancia de la misma y la volatilidad.
Precio de Conversion = Valor Nominal / Conversion Ratio
Conversion ratio: La comparación de acciones comunes por bono.
Bono exigible: cuando el emisor tiene el derecho de librarse antes del vencimiento.
Si el precio call de tu bono a x fecha está por debajo al valor convertible en el # de acciones canjeables, la compañía emisora puede ejercer el call para forzar la conversión. Ejerciendo el call y forzando a conversión, las compañías pueden convertir su deuda en capital.…...

Similar Documents

Free Essay

Red Convertible

... “The Red Convertible” The Winnipeg Trip by April Herald As explained in the story “The Red Convertible” the set of brothers are Indians living on a reservation and this in itself is an experience that most people in America would not have been subjected to. The brothers have bonded from the way of life that is their existence; Henry is the older of the two and Lyman looks up to him. While taking a trip to Winnipeg, the event displays the similar attitudes of their free spirited natures and the bond between the brothers. During the trip Lyman states that neither he nor his brother has a job anymore but they both have decided to bring all the money that they do have with them. Having no intention of buying the car, as expressed in the story, but still needing the money just in case. This shows that they do have the same mind set. Later when they are walking down the street, the car setting in “repose” catches their eye simultaneously as if they are acting as one person. Not worrying about tomorrow, the free spirited pair decided to spend all of their money on the red convertible. Buying something tangible like a home or a car represents the union of two people when they are both involved in the purchase. At this time brothers are displaying how powerful their bond truly is. There is no thought concerning what if we don’t get along or what if we have to separate in the future. The car purchase shows the mindset of the two as always being close and feeling the same way......

Words: 379 - Pages: 2

Premium Essay

Bonds

...Bonds are appealing to investors because they provide a generous amount of current income and they can often generate large capital gains. These two sources of income together can lead to attractive and highly competitive investor returns. Bonds make an attractive investment outlet because of their versatility. They can provide a conservative investor with high current income or they can be used aggressively by investors who prefer capital gains. Given the wide and frequent swings in interest rates, investors can find a variety of investment opportunities. In addition to their versatility, certain types of bonds can be used to shelter income from taxes. While municipal bonds are perhaps the best known tax shelters, some Treasury and federal agency bonds also give investors some tax advantages. Bonds are exposed to the following five major types of risk: (1) Interest rate risk: This affects the market as a whole and therefore translates into market risk. When market interest rates rise, bond prices fall, and vice versa. (2) Purchasing power risk: This is the risk caused by inflation. When inflation heats up, bond yields lag behind inflation rates. A bond investor is locked into a fixed-coupon bond even though market yields are rising with inflation. (3) Business/financial risk: This refers to the risk that the issuer will default on interest and/or principal payments. Business risk is related to the quality and integrity of the issuer, whereas financial risk relates to the......

Words: 15669 - Pages: 63

Premium Essay

Convertible Warrant

...A convertible warrant is an option that allows the buyer to partially or fully convert the alloted warrants into an equivalent number of equity shares of the company within a specified time period. Preferential allotment of convertible warrants is a private placement of warrants to a select group of persons who may or may not belong to the promoter group. SEBI has come up with certain guidelines for preferential allotment of warrants. These guidlines have to be strictly followed by any company which goes for preferential allotment. Need for convertible warrants ----------------------------- i)From the company's perspective : Every company requires cash for its operation, expansion plans and M&A. When a company needs a large amount of money in a short duration, private placement of warrants is a good option. ii)From the Warrant Buyer's perspective : Convertible warrants allow the buyer to earn a fixed rate of return without the risk of capital loss due to a fall in the stock price of the company. The buyer can also earn profits by exercising the option to convert the warrants to equity shares if the stock price of the company appreciates. What it means to the shareholders of the company ------------------------------------------------ Advantages : It is a good sign if promoters go for convertible warrants at a price higher than the market price. It reassures the shareholders that the promoters have faith in the company. Also, the company can grow at a faster...

Words: 663 - Pages: 3

Free Essay

Spanish

...Spanish 2010 :Intermediate Spanish I Semester: Fall 2013 Instructor: Dora Berry Office: Jones 217 e-mail: aberry@memphis.edu Office Hours: MWF from 7:15am to 7:45am or MW from 11:30am to 12:30 by appointment TR from 7:15am to 8:30am or TR from 1pm to 1:30pm by appointment SCHEDULE OF CLASSES (Classes meet 2x a week (T TH) for 1 hr. 25 minutes) Día T 8/27 Objetivos  Learn terms for rooms in a house, common household objects, and chores  Make recommendations, make polite requests & organize work  Learn rules for capitalization in Spanish  Combine sentences using relative pronouns  Give orders or advice to people you address with tú En clase  First day of classes (Drop/Refund Deadlines)  Introduction to course / Syllabus overview  Lección 12: Introduction, p. 403  Contextos, pp. pp. 404– 407  Fotonovela, pp. 408–410  Ortografía, p. 411  Estructura 12.1 Relative pronouns, pp. 414–417  Estructura 11.1 Familiar commands, pp. 378–381 Tarea para la próxima clase -Supersite: Lección 12  Estructura 12.1 Practice, Workbook, and Lab Manual activities  Estructura 11.1 Practice, Workbook, and Lab Manual activities TH 8/29 -Supersite: Lección 12  Estructura 12.2 Practice, Workbook, and Lab Manual activities  Estructura 12.3 Practice, Workbook, and Lab Manual activities [Flash cultura: Practice activities] M 9/2 T 9/3 LABOR DAY: NO CLASS  Give orders or advice to people you address with usted or ustedes  Express attitude towards hypothetical or......

Words: 1839 - Pages: 8

Premium Essay

Bond Valuation

...Bond Valuation By Anuj Joshi Note 1 Bond Valuation Fixed income paying securities. 1. Theoretical price or value of bond depends upon. i. Coupon Payment : Fixed amount of interest to be received after prescribed frequency. ii. Maturity Value [Unless otherwise given is exam, we should take face value] iii. Discount Rate : It should always be market interest rate 2. What is market interest rate Market interest rate is derived from comparable listed bond. The comparison is based on risk and life of the bond. E.g. If we are valuing a bond which is unlisted and have 5 years of life, then we should look for a bond which is similar in risk profile (i.e. same credit rating)and having similar life. The YTM (Yield to Maturity) of listed bond is called market interest rate The YTM of a bond is nothing but IRR of the bond. 3. Value of a bond = PV of Coupon Amount + PV of Maturity Value [Remember CF and discount rate are before tax] Concept Point: i. Coupon rate is a historical rate and should never be used as a discount rate. In exam, if no other information is available, then only we should assume coupon rate of interest as market rate of interest. ii. Remember, Cost of Capital or Discount Rate is a future concept and it represents opportunity cost on the date of valuation. iii. YTM of a similar bond (i.e. current market interest rate) is the appropriate discount rate for bond valuation. How to value a bond which pays interest at a frequency lower than annually (e...

Words: 2748 - Pages: 11

Premium Essay

Bonds

...Vincent Murphy 4/14/14 There are many great ways to invest your hard earned money; this can be done through stocks and bonds. With stocks and bonds you can invest in companies, governments or even your local bank. In this report I will tell three of the most common and efficient ways to invest your finances, They are common stock, preferred stock and company bonds. Common stock allows you to be a part owner of a company along with other stock holders. Being a part owner comes with one major benefit, the ability to elect the board of directors. Lastly you could potentially earn dividends paid out by the company. Unlike preferred stocks the dividend that are not promised to common stock holders. This now brings me to the second popular investment tool Preferred stocks. With preferred stocks you are not the owner of the company, this means you have no voting rights. Even though you are not an owner you do receive preferential treatment in receiving dividends. This means that the company that you own stock in will ensure that you receive dividends before the common stock owners. Lastly, another incentive for owning preferred stock is that the dividends are given at a fixed rate. The last investment option I will talk about is company bonds. Company bonds work off of collateral, to help insure you get your money if the company fails. There is two types of collateral, mortgage and equipment. With mortgage collateral if anything was to happen to the company you would......

Words: 390 - Pages: 2

Premium Essay

Bonds

...-In order to understand the effect of issuing and refinancing bonds, I want to present you with some important bond basics. -So what’s the goal of a bond? -Companies issue bonds to create debt for its company. -For example, maybe the company needs to finance a project and needs immediate capital. -So the goal is to borrow money for a given period of time, specified in the contract. -So what does the company have to give up? -Must pay interest each period -Must repay the face value of the bond at the end of the period. -Bonds can be sold at a discount, a premium, or par value -If the bond is sold at a premium, the bond costs more than the face value of the bond -Thus the company will increase the interest offered over market rate -If the bond is sold at a discount, the bond costs less than the face value of the bond. -Thus the company will decrease the interest offered over market rate. -And of course, par means it is sold at the face value. -Liability is the whole amount of the bond that the company owes at the time in question. -As we will soon see, because the prevailing market rate for bonds has decreased over recent years, Lyons will have the opportunity to buyback the old bonds and offer new bonds at a lowest interest rate. -I will now pass it to Aditya who will further discuss the specifics of the original bond issue....

Words: 254 - Pages: 2

Premium Essay

Bond Market

...Bond Market INTRODUCTION Presently, as there is a robust growth of industrial activity in our economy, the need for investment has grown significantly and has resulted in a strong credit growth Some disintermediation is expected to take place as the most creditworthy borrower seeks the lowest borrowing costs. This development has re-emphasized the fact that bond financing has to supplement the traditional bank financing to take care of the growing credit needs of the economy. The Indian debt market, particularly the government securities market, has undergone a significant transformation since the introduction of reforms in the financial markets in 1991-92. The primary objective behind the reforms has been to moderate liquidity growth, contain inflationary pressure, and conduct public debt management in a cost-effective manner. Various reforms have also been undertaken in the corporate debt market. The corporate bond market is an important segment of the financial market in terms of funds raised well as potential for future growth. The Securities and Exchange Board of India (SEBI) was established in 1992, to regulate the primary issue in equity and de markets and to ensure sound trading practices in the secondary market throu stock exchanges. The bond market is an important source of funding for both t government and corporate sector. The bond market, also known as the debt, credit, or fixed income market, is a market where participants buy and sell debt......

Words: 6265 - Pages: 26

Free Essay

Spanish

...Spanish Skit Robyn: (Calls Chris) Chris: Hola! Que tal? Robyn: Hola! Bien. Yo hago una fiesta. Vienes a mi casa para la fiesta. Chris: Claro que si! ¿Puedo traer a mi amigo? Robyn: Sí, nos vemos pronto. Chris and Macro walk in Robyn: Hola amigos, este es mi amiga Kenzi. Chris: Encantado. Kenzi: Igualmente. ¿Quién es tu amigo? Chris: Este es mi amigo Marco Kenzi and Robyn: Marco, encantado. Marco: Que tal? Kenzi: Nada. Hace mucho frío hoy. ¿Te gusta el invierno? Marco: No, no me gusta el frío. Marco: Mi estación favorito es el verano. Kenzi: (Face Chris) ¿Qué equipo es tu favorito? Chris: Nos gustan Patriots. Marco: ¿Quién es tu favorito? Robyn: Nos gustan Seahawks. Marco: Quien es tu jugador favorito? Kenzi: Mi favorito es Marshawn Lynch Chris: A mi me encanta Tom Brandy Kenzi: Por que Chris: Mi numero favorito es doce. Marco: Tengo hambre. Robyn: Qué comida le gusta? Kenzi: A mi me gusta Salsa. Marco: A mi me gusta guacamole. Robyn: Bueno, yo tengo los chips y salsa en la mesa en la sala de estar Everybody “walks” into the living room” Kenzi:Que sabías viajo a México? Marco: Que te gusta mas en Mexico? Kenzi: La biblioteca de la Universidad de Mexico. Marco: Que significa? Kenzi: La fachada tiene un mosaic porque yo studio arte. Marco: Simpatico. Quien viaja con usted? Kenzi: Sí. Viajo con mi hermana. Ella comica. Robyn:Viajo con mi hermano. El alto y inteligente. Marco: Son las doce the game starts in trienta minutos. Kenzi: Yo alegro de ser......

Words: 362 - Pages: 2

Premium Essay

Bonds

...BONDS AND SINKING FUNDS Amortization of Bond Premiums and Discounts *APPENDIX: The origin and calculation of bond premiums and discounts were discussed in Section 15.2. We will now look at the premiums and discounts from an accountant’s perspective. The point of view and the schedules developed here provide the basis for the accounting treatment of bond premiums, discounts, and interest payments. Amortization of a Bond’s Premium Bonds are priced at a premium when the coupon rate exceeds the yield to maturity required in the bond market. Suppose that a bond paying a 10% coupon rate is purchased three years before maturity to yield 8% compounded semiannually. The purchase price that provides this yield to maturity is $1052.42. The accounting view is that a period’s earned interest is the amount that gives the required rate of return on the bond investment. The interest payment after the first six months that would, by itself, provide the required rate of return (8% compounded semiannually) on the amount invested is 0.08 ϫ $1052.42 ϭ $42.10 2 The earned interest during the first six months from an accounting point of view is $42.10. The actual first coupon payment of $50 pays $50 Ϫ $42.10 ϭ $7.90 more than is necessary to provide the required rate of return for the first six months.7 The $7.90 is regarded as a refund of a portion of the original premium, leaving a net investment (called the bond’s book value) of $1052.42 Ϫ $7.90 ϭ $1044.52 This......

Words: 1917 - Pages: 8

Free Essay

Spanish

...My Two Best Friends Donald Towles Marvin Paul Skinner, MA Lan 111-Spanish 1 September 5, 2011 Un mejor amigo es uno que adora la verdad en usted, y dirá la verdad a pesar de todo más. Hay muchas personas que usted hace amistad con, pero es muy duro encontrar un a amigo verdadero y honesto. Pero tengo mucha suerte que tengo a un mejor amigo con con quien puedo compartir mis sentimientos y dividir pena. Su nombre es Nikia. Es muy amistosa, y soy muy feliz de tenerla como mi mejor amigo. Es muy bien respetuosa, trabajadora, y una persona honesta. Mi mejor amigo es mi esposa. Nosotros sólo hemos estado casados por aproximadamente tres meses, pero han sido juntos durante siete años. Nikia es de Omaha, Nebraska y yo son de Tennessee. Encontramos en un súper partido de tazón y yo supe entonces que fue el uno para mí. Fechamos durante tres años antes de ser comprometidos. Fuimos tan en amor que hicimos todo juntos. Disfrutamos de baloncesto que mira, las películas y trabaja afuera en nuestro jardín. Nikia tiene todas las características que personas buscan en amigos; como conducta amistosa, como la respetuosidad, y como la honradez. Aunque fuéramos levantados millas y millas aparte, nuestra relación continúa florecer y crecer a causa de los valores que nuestros padres instalaron en nosotros como crecimos, que ayuda a mantener nuestra amistad en el sendero correcto. La conducta amistosa de Nikia es vista sus donativos...

Words: 520 - Pages: 3

Premium Essay

Bonds

... a) Bond – is a long term contract under which the borrower agrees to make payments of interest and principal, on specific dates, to the holders of the bond. Treasury bonds – sometimes referred to as government bonds, are issued by the U.S. federal government. These bonds have not default risk. However, these bonds decline when interest rates rise, so they are not free of all risk Corporate bonds – issued by corporate; exposed to default risk – if the issuing company gets into trouble, it may be unable to make the promised interest and principal payments. Different corporate bonds have different levels of default risk, depending on the issuing company’s characteristics and the terms of the specific bond. Default risk often referred to as “credit risk” and the larger the default or credit risk, the higher the interest rate the issuer must pay. Municipal bond – or “munis “ are issued by state and local governments. Like corporate bonds, munis have default risk. Munis offer one major advantage over all the other bonds is exempt from federal taxes and also from state taxes if the holder is a resident of the issuing state. Munis bonds carry interest rates that are considerably lower than those on corporate bonds with the same default risk Foreign bond – are issued by foreign governments or foreign corporations. Foreign corporate bonds are of course exposed to default risk, and so are some foreign government bonds. An additional risk exists if the bonds are......

Words: 1835 - Pages: 8

Free Essay

Spanish

...Spanish Is A Romantic Language. Almost Everything Sounds More Romantic In Spanish Than In English, Don't You Think? On This Page You Can Learn The Vocabulary Of Love And Romance. Try Them Out On Someone Special. How To Say "Sweetheart" In Spanish In English We Call Our Loved Ones "Dear", "Honey" Or "Sweetheart". Here Are Spanish Words You Can Use To Express The Same Idea. Cariño - Dear Mi Amor - My Love Mi Vida - My Life Corazón - Heart Mi Reina/Rey - My Queen/King Tesoro - Treasure Querida/Querido - Dear Nena/Nene - Baby Muñeca - Doll Guapa/Guapo - Gorgeous Bonita - Pretty Novia/Novio - Girlfriend/Boyfriend Esposa/Marido - Wife/Husband Expressions Of Love Now That You Know How To Address Your Loved Ones, You Will Need A Few Handy Phrases To Make Them Feel Special. Spanish Has Two Verbs That Express Love: Amar And Querer. Generally Speaking, Amar Is Stronger And You Will Probably Only Use It With Your Spouse Or With Whomever You Are Romantically Involved. Querer Is More Affectionate And Less Passionate. You Can Use It With Your Friends And Family. There's A Famous Song By El Príncipe De La Cancion, José José, Called "Amar Y Querer" Which Explains The Difference Between The Two In A Highly Romanticized Way. Here Are The Lyrics. By The Way, Listening To Latin Songs And Studying The Lyrics Is A Great Way To Improve Your Spanish. I Love You - Te Quiero, Te Amo You're Beautiful - Eres Muy Bonita You're Handsome - Eres Guapo I'm Crazy......

Words: 3280 - Pages: 14

Free Essay

Bonds

...FV TVM - INVESTING CONTD. SOLUTIONS STEP 2: WE ARE SOLVING FOR I/Y P/Y =12 NOTE: since you are saving MONTHLY, you must set P/Y to 12 N = 15 X 12 = 180 PV = -100000 PMT = -500 FV = 1500000 SOLVE FOR I/Y = 16.20% 12. USING BOND SPREADSHEET (covered later in course). You want to buy an A rated bond that matures in 15 years. The coupon rate is 8%. The yield on A rated bonds in the same maturity range is 7.5%. What price would you pay for this bond? Corporate bonds mature at PAR. Par = $1000 • Corporate bonds pay interest coupons SEMIANNUALLY. P/Y = 2 • The stated interest rate on the bond is fixed for the life of the bond. This is called the “Coupon rate.” • All bonds are priced to the market yield on bonds of similar type, quality and maturity. This yield is always changing and bonds adjust to it by the price fluctuating. If yields in the market go UP, bond prices go DOWN. SET BGN SET P/Y = 2 N = 30 (Remember N = P/Y times the number of years) I/Y = 7.5 In a bond problem I/Y is the yield on other similar bonds. DO NOT use the coupon rate on the bond. FV = 1000 All bonds mature at par. Par = 1000 PMT = 40 Bonds pay interest semiannually. This bond has a coupon rate of 8%. Annual interest = 8% x $1000 = $80 Each coupon is therefore half the annual interest of $80 or $40 SOLVE FOR PV 1071.32 PROBLEM A loan of $50,000 is due 10 years from today. The...

Words: 1716 - Pages: 7

Premium Essay

Convertible Bonds

...is expected that you will attached an assignment cover sheet to each assignment you submit. Page 2 Table of Contents EXECUTIVE SUMMARY 1. INTRODUCTION 2. NATURE OF CONVERTIBLE BONDS 3. FINANCIAL ADVANTAGES AND DISADVANTAGES 3.1 3.2 ADVANTAGES DISADVANTAGES ii 1 1 2 2 2 3 5 5 6 7 4. ACCOUNTING TREATMENT 5. LOGIC OF THE ACCOUNTING REQUIREMENTS 6. CONCLUSION 7. RECOMMENDATIONS REFERENCES (i) Page 3 EXECUTIVE SUMMARY This report provides information about convertible bonds for the managers of Hamilton Manufacturing. Included is information about the nature of convertible bonds, financial advantages and disadvantages Hamilton could expect from issuing such bonds, and their accounting treatment. A convertible bond is a debt security that carries the option of exchange for an equity security, usually common stock. The bond indenture specifies when the bonds may be converted and a conversion price or ratio. The conversion price is usually from 10 to 20 percent above the market price of the common stock at the time of issue. Both the issuer and the investor expect the market price of the stock to rise above the conversion price; therefore, bondholders are likely to convert the bond into equity. Convertible bonds would offer Hamilton three advantages: ▪ The company could issue the bonds at a premium or at a low stated interest rate, which investors would accept because of the conversion privilege. ▪ The company could avoid another stock issue now, when...

Words: 2327 - Pages: 10

Philips airfryer | Education - 6848 Words | Tobacciana & Smoking Supplies