A company issued a zero-coupon fully convertible note with a face value of Rs. 1000/- each note would be converted into 8 equity shares of Rs. 2/- each at a premium of Rs.98/- per share. Each note also has 2 detachable warrants that can be converted into 2 shares at no extra cost to the investor. Assuming the cost of funds to be 10% p.a how much of the amount collected can be allocated to interest cost by the company if the total conversion period is six months?

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A CFA General Discussion About Convertible Notes

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This topic has 4 replies, 5 voices, and was last updated Apr-2510:56 am by gremlinbaby.

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- farare
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  08 Mar 2024 at 8:28 am
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  This can be done through text infinite craft messages, emails, or social media. Cyberbullying can have a negative impact on the victim’s mental health.
- bettyking
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  08 Mar 2024 at 9:36 am
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- fretfultulip
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  17 Mar 2025 at 2:59 am
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  The amount collected from each zero-coupon note is Rs. 1,000. Over six months, the interest cost allocated would be Rs. 50 (10% annual rate = Rs. 100; half for six months).
  
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- gremlinbaby
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  22 Apr 2025 at 10:56 am
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  A masterpiece of dark creativity! Sprunki Retake proves that horror and music belong together in perfect, eerie harmony!
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