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complete answers please thank you 1. On Convertible Debt/Bond a. A convertible bond (=convertible debt) behaves more like bond a low price of the stock

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complete answers please thank you

1. On Convertible Debt/Bond a. A convertible bond (=convertible debt) behaves more like bond a low price of the stock and more like a equity securities at high stock prices, explain. b. Why do companies with low credit quality could be more motivated than other types of companies to issue convertible bonds? c. What are the reasons for companies to issue convertible debt? d. VIX is the market indicator for stock market volatility. What would happen to the value of a convertible bond when VIX increases? Why? e. How does the following factors affect the convertible debt valuation? Provide full explanation to get credit. i. Price of underlying security. ii. Dividend yield of underlying security iii. Coupon iv. Maturity v. Liquidity of the convertible debt instrument vi. Borrow cost vii. Country risk of issuer 1. On Convertible Debt/Bond a. A convertible bond (=convertible debt) behaves more like bond a low price of the stock and more like a equity securities at high stock prices, explain. b. Why do companies with low credit quality could be more motivated than other types of companies to issue convertible bonds? c. What are the reasons for companies to issue convertible debt? d. VIX is the market indicator for stock market volatility. What would happen to the value of a convertible bond when VIX increases? Why? e. How does the following factors affect the convertible debt valuation? Provide full explanation to get credit. i. Price of underlying security. ii. Dividend yield of underlying security iii. Coupon iv. Maturity v. Liquidity of the convertible debt instrument vi. Borrow cost vii. Country risk of issuer

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