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Case Study: Convertible Bonds of Countrywide Financial Corporation, By: RAVI JAGANNATHAN Questions: 1. What could be the reasons behind the exchange offer? 2. Would you

Case Study: "Convertible Bonds of Countrywide Financial Corporation", By: RAVI JAGANNATHAN

Questions:

1.What could be the reasons behind the exchange offer?

2. Would you accept the exchange offer?

3. Will the call and put features affect the pricing of the new convertible security?

4. What will be the conversion proceeds in $ terms on October 20th, 2004?

5. What is the reason behind the sudden increase in the convertible bond trading on

October 20th, 2004?

6. What is the cost to the investors and the company?

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