Convertible

Abstract: Configured with a rapid evaporation rate and a high photothermal conversion efficiency, solar-driven interfacial evaporation displays considerable promise in seawater desalination. Inspired by the versatility and deployability of origami-based structures,...

Abstract: A convertible bond is a hybrid financial instrument that incorporates features of a bond (fixed income security) and an equity claim (usually common stock). In most instances the convertible can be exchanged, at the holder's option, for the common shares of the corporation issuing the convertible. The conversion value, or stock value, is the market value of the common shares for which the convertible can be exchanged. The bond value or floor price is the market value of an equivalent bond that does not include a conversion feature. The market price of a convertible will be the conversion value or the bond value, whichever is higher, plus a premium. The purpose of this paper is to develop and test a model which estimates the premium. The premium estimated is defined as the difference between the market price of the convertible and the bond value or conversion value, whichever is larger. No consideration will be given to convertible preferreds.

Abstract: The extensive use of convertible debt (in excess of $1.5 billion annually) has made this type of security very prominent in financing the activities of modern corporate organizations. in addition, as a result of Accounting Principles Board Opinion No. 15, these securities have a direct influence upon reported earnings per share. Con­ sidering these factors, it is imperative that the financial statement presentation of convertible bonds reflect the economic characteristics inherent in these securities. In order to determine whether current practice satisfactorily achieves the goal of reporting the economic substance of the transaction, this study was designed to evaluate the acceptability of allocation of value to the conversion option. More specifically, the null hypothesis of this study is that there would be no significant differ­ ence for theoretical or predictive purposes under alterna­ tive procedures of accounting for convertible bonds. The testing of the theoretical portion of the hypoth esis involves an examination of the current literature together with information obtained from the files of the Accounting Principles Board. In addition to these data, an interview was conducted with the Assistant Administrative Director of the APB.