Under what conditions will the production-linked corporate bond be oversubscribed at the expense of the government...

Under what conditions will the production-linked corporate bond be oversubscribed at the expense of the government bond. Explore all possible scenarios (not more than one page)

Expert Solution

Conditions:
Rate of conversion: The number of shares issued is based on the level of conversion. If the conversion increased the availability of share increases. Thus there is over subscription of the corporate bonds.
Period of conversion: Bond cannot be converted to a share during its maturity period. The conversion period extended till two years.
Conversion process: There is a need of written document for the conversion. Through book entry system shares will be registered in connection with conversion. The conversion request do not have right to change.
Right of holder of share in certain situation: If there is acquisition or redemption of own shares, there is higher applicable conversion rate. If there is a need for liquidation of the bond, the predetermined period should be fixed before the dissolution or deregistration of the bond. This kind of rights attracts more investors to the market.
The over subscription increase the price of securities per price and offer more additional securities. Over subscription improve the public purchase.

Rahul Sunny answered 2 years ago

Under what conditions are externalities likely to be internalized without the necessity of government intervention?

Under what condition or conditions would you like the government to regulate the price or quantity...

Under what condition or conditions would you like the government to regulate the price or quantity of your firm’s good(s)? Explain the situation, then use an economic model to illustrate and support your answer. Under what condition would you like to government to regulate the price or quantity of goods/services that you buy as a consumer? Explain the situation, then use an economic model to illustrate and support your answer.

Use the IS-LM model to explain under what conditions an increase in government spending is likely...

Use the IS-LM model to explain under what conditions an increase in government spending is likely to have a) a greater impact on national output b) a smaller impact on national output.

Under what conditions of a bond issuance does a discount arise? How are discounts reported on...

Under what conditions of a bond issuance does a discount arise? How are discounts reported on the face of the financial statements? Describe the two methods of amortizing a discount. Why does GAAP find the effective-interest method of discount amortization preferable?

. Under what conditions on a and b do the following production functions exhibit decreasing, increasing...

. Under what conditions on a and b do the following production functions exhibit decreasing, increasing or constant returns to scale? Mathematically justify and show your work. a. Q(L,K) = aL + bK b. Q(L,K) = (La + Ka ) 1/b

Under what conditions would a seller be willing to sell on consignment? Under what conditions would...

Under what conditions would a seller be willing to sell on consignment? Under what conditions would a seller be willing to sell on terms of cash before delivery? Lastly, Under what conditions would a buyer be comfortable with each of these two extreme terms of sale? (on consignment OR cash before delivery)

The control model of corporate governance is not applicable under all of the following conditions except...

The control model of corporate governance is not applicable under all of the following conditions except for Group of answer choices A.Board members are largely outsiders B.Capital markets are liquid C.Separate ownership and control D.Equity ownership is not concentrated E.None of the above

Question

Under what conditions will the production-linked corporate bond be oversubscribed at the expense of the government...

Solutions

Expert Solution

Related Solutions