问题如下:
Based on Exhibit 4 and Gillette’s forecast regarding Raffarin’s share price, the return on the RI bond over the next year is most likely to be:
选项:
A. lower than the return on Raffarin’s common shares.
B. the same as the return on Raffarin’s common shares.
C. higher than the return on Raffarin’s common shares.
解释:
A is correct.
Over the next year, Gillette believes that Raffarin’s share price will continue to increase towards the conversion price but not exceed it. If Gillette’s forecast becomes true, the return on the RI bond will increase but at a lower rate than the increase in Raffarin’s share price because the conversion price is not expected to be reached.
老师请问,这里convertible bond的return比标的stock return难道不是因为可转债有premium吗?