QUESTION 1

Whether it is indeed the case that the acquiring member doesn't get any of the value from the transaction. How might such a benefit breakdown even be measured? Please provide a thorough explanation. Thank you!

QUESTION 2

Companies have some advantages of convertible bonds one of these advantages being that the interest payments are low. Investors are more likely to invest on low interest convertible bonds compared to other bonds. This means that the company can save money on convertible bonds because the interest rate is low, and the investors wont be getting much compared to other bonds. Convertible bonds provide tax advantages for the company because of the interest payments being tax-deductible. Straight corporate bonds can provide higher yield compared to convertible bonds but dont provide the benefit of conversion compared to convertible bonds. I think the best time to invest in convertible bonds would be when interest rate and stock prices are rising this is because the bonds would provide a balance between risk and reward. Overall, convertible bonds are a good investment that can provide less risk to investors. It is difficult to find the best time to invest in convertible bonds, it will all depend on the goal of the investors and what they are expecting to get from the investment.

Do you think right now is a good time to invest in these types of bonds compared to 2022? Why? Why not?

Please provide a thorough explanation. Also, feel free to comment on opinion about convertible bonds vs straight bonds (which ones are better). Thank you!