Question 6 (10 points) ETSY O $ 10/01/26:1171.834 +1.396 Yld -8.833 At 12:08d Vol 500. OM Source TRM ETSY O 1/8 10/01/26 Co Settings Actions Page 1/12 Security Description: Convertible 94 No Notes 95) Buy 96) Sell 25 Convertible Bond 26) Underlying Description Pages Issuer Information Identifiers 11 Bond Info Name ETSY INC ID Number ZR6981883 12 Addtl Info Industry Consumer Cyc Services (BCLASS) 13) Reg/Tax CUSIP 29786AAJ5 14 Covenants Convertible Information ISIN US29786AAJ51 15 Guarantors Mkt of Issue US DOMESTIC Convertible Bond Ratings 10 Bond Ratings Country US Currency USD 17) Identifiers Rank Sr Unsecured Series 18) Exchanges Conv Ratio 11.4040 Conv Price 87.6885 19) Inv Parties Stock Tkr 20 Fees, Restrict ETSY US Stock Price 137.8450... 21) Schedules Parity 157.1984 Premium 9.3102 Issuance & Trading 22 Coupons Coupon 0.125000 Init Prem 47.500 Amt Issued/Outstanding Quick Links Type Fixed Freq S/A USD 650,000.00 (M)/ 32) ALLQ Pricing USD 650,000.00 (M) 33) QRD Qt Recap 34 TDH Trade Hist Calc Type (49) CONVERTIBLE Min Piece/Increment 35) CACS Corp Action Pricing Date 09/19/2019 1,000.00 / 1,000.00 36 CF Prospectus 1st Coupon Date 04/01/2020 Par Amount 1,000.00 37) CN Sec News Convertible Until 09/29/2026 Book Runner BCLY,GS,JPM 38) HDS Holders Maturity 10/01/2026 Reporting TRACE 39) OVCV Valuation THIS IS THE UNRESTRICTED CUSIP FOR 144A CUSIP 29786AAH9. 66) Send Bond Australia 61 2 9777 8600 Brazil 5511 2395 9000 Europe 44 20 7330 7500 Germeny 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 4565 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2020 Bloomberg Finance L.P. SN 562982 EDT GMT-4:00 H215-2010-0 23-oct-2020 19:24:58 Given the information in the Bloomberg screen above, explain the computation for: a. the conversion price (market conversion price), b. the parity (conversion value), c. the premium (conversion premium ratio). d. Assuming a yield of 7% on the bond, compute the premium over straight value. Question 6 (10 points) ETSY O $ 10/01/26:1171.834 +1.396 Yld -8.833 At 12:08d Vol 500. OM Source TRM ETSY O 1/8 10/01/26 Co Settings Actions Page 1/12 Security Description: Convertible 94 No Notes 95) Buy 96) Sell 25 Convertible Bond 26) Underlying Description Pages Issuer Information Identifiers 11 Bond Info Name ETSY INC ID Number ZR6981883 12 Addtl Info Industry Consumer Cyc Services (BCLASS) 13) Reg/Tax CUSIP 29786AAJ5 14 Covenants Convertible Information ISIN US29786AAJ51 15 Guarantors Mkt of Issue US DOMESTIC Convertible Bond Ratings 10 Bond Ratings Country US Currency USD 17) Identifiers Rank Sr Unsecured Series 18) Exchanges Conv Ratio 11.4040 Conv Price 87.6885 19) Inv Parties Stock Tkr 20 Fees, Restrict ETSY US Stock Price 137.8450... 21) Schedules Parity 157.1984 Premium 9.3102 Issuance & Trading 22 Coupons Coupon 0.125000 Init Prem 47.500 Amt Issued/Outstanding Quick Links Type Fixed Freq S/A USD 650,000.00 (M)/ 32) ALLQ Pricing USD 650,000.00 (M) 33) QRD Qt Recap 34 TDH Trade Hist Calc Type (49) CONVERTIBLE Min Piece/Increment 35) CACS Corp Action Pricing Date 09/19/2019 1,000.00 / 1,000.00 36 CF Prospectus 1st Coupon Date 04/01/2020 Par Amount 1,000.00 37) CN Sec News Convertible Until 09/29/2026 Book Runner BCLY,GS,JPM 38) HDS Holders Maturity 10/01/2026 Reporting TRACE 39) OVCV Valuation THIS IS THE UNRESTRICTED CUSIP FOR 144A CUSIP 29786AAH9. 66) Send Bond Australia 61 2 9777 8600 Brazil 5511 2395 9000 Europe 44 20 7330 7500 Germeny 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 4565 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2020 Bloomberg Finance L.P. SN 562982 EDT GMT-4:00 H215-2010-0 23-oct-2020 19:24:58 Given the information in the Bloomberg screen above, explain the computation for: a. the conversion price (market conversion price), b. the parity (conversion value), c. the premium (conversion premium ratio). d. Assuming a yield of 7% on the bond, compute the premium over straight value
