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Discuss the following questions with respect to the WSJ article entitled: Tesla Makes Record $920 Million Payment for Convertible Bond By Akane Otani and Sam

  1. Discuss the following questions with respect to the WSJ article entitled: Tesla Makes Record $920 Million Payment for Convertible Bond By Akane Otani and Sam Goldfarb | Mar 02, 2019 (found in Canvas)
  1. (a) What is a convertible bond? Why are they attractive to investors? Why are they attractive to companies? What are the possible disadvantages?
  1. (b) What are the facts regarding Tesla's convertible bonds? What did the company do about those bonds recently?
  1. (c) What is Tesla's current financial condition? What are the bright spots? What are the troublesome areas?
  1. (d) How does the payment of this debt affect the companies financial statements? How are its financial ratios and analysis affected?
  1. (e) Were investors likely to convert any of these bonds? Why or why not?

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