Quiz Ch 24 – T/F Characteristics of Floating Price Convertibles
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Within floating price convertibles, bondholders can convert into shares at a set value.
True or false: Within floating price convertibles, bondholders can convert into shares at a set value.
True or false: Reverse floaters alter interest rates, offering higher returns in rate declines and lower returns in rate increases.
True or false: Possessing a convertible bond provides unique ownership, representing both a straight bond and a call option.
True or false: A bond sold within the United States is a Yankee bond.
True or false: The impact of a bond-warrant package on cash flow and capital structure contrasts with that of a convertible bond.
True or false: Affirmative covenants entail distinct mandates, placing specific obligations on the company.
True or false: Loan guarantees enhance debt value without requiring up-front cash.
True or false: Leveraging government loan guarantees offers risk-free assistance to distressed firms.
True or false: Warrants can be issued independently, not necessarily with other securities.
True or false: The negative pledge clause places allows the company to grant an exclusive lien or claim on any of its assets.