Series 7 question

ppteam · 发表于 2010-1-26 09:47 PM

本帖最后由 ppteam 于 2010-1-26 21:48 编辑

Investor purchased a 6 percent DIM convertible bond. His DIM bond is currently trading at 106,
and the underlying stock is trading at 26. If the conversion price is 25, which of the following is TRUE?

I. The stock is trading above parity.
2. The stock is trading below parity.
3. Converting the bond would be profitable.
4. Converting the bond would not be profitable.

yaobooyao · 发表于 2010-1-26 10:22 PM

Sorry, 不小心选了2，应该选1。

改不了答案了。

lite1067 · 发表于 2010-1-26 10:29 PM

reward HT$ 1000 to the winner? haha.

ppteam · 发表于 2010-1-26 11:08 PM

3# lite1067

ppteam · 发表于 2010-1-26 11:10 PM

2# yaobooyao

no problem; for fun only.

atrader · 发表于 2010-1-26 11:31 PM

我的Series 7已多期好几年了，也忘了。

bushbreeze · 发表于 2010-1-27 12:58 AM

我选了4.没弄过SERIES 4，就弄过CFA LEVEL I

ppteam · 发表于 2010-1-27 12:59 AM

correct answer is D.

lite1067 · 发表于 2010-1-27 01:51 AM

correct answer is D.
ppteam 发表于 2010-1-27 00:59

HT$1000 拿来。

bushbreeze · 发表于 2010-1-27 01:51 AM

OH, YEAH!

jayceezhong · 发表于 2010-1-27 04:44 PM

請問各位那里有相關SERIES 7的資料可以學啊？謝謝。

ppteam · 发表于 2010-1-27 05:14 PM

11# jayceezhong

there's a book "Series 7 for dummies'.

http://www.amazon.com/Exam-Dummi ... 64626993&sr=1-1

yaobooyao · 发表于 2010-1-27 05:25 PM

Shit I am so stupid.

What the Fxxx is 'stock is trading at parity', fake statement.

The bound is trading above parity. And bond yield is 6%.

If convert to stock at 25 and sell at 26, the capital gain yield is :(26-25)/25 = 4%, so for a 6% yield bond holder, it's not attractive as it's less profitable than holding the bond.

Damn! I forgot every penny in CFA 1!

lite1067 · 发表于 2010-1-27 05:29 PM

Shit I am so stupid.

What the Fxxx is 'stock is trading at parity', fake statement.

The bound is trading above parity. And bond yield is 6%.

If convert to stock at 25 and sell at 26, the ca ...
yaobooyao 发表于 2010-1-27 17:25

sorry, man, but I have to say your explanation is totally wrong :-)

one tip to you: not all the given information are useful, some is specificly given to mislead you.

yaobooyao · 发表于 2010-1-27 05:32 PM

本帖最后由 yaobooyao 于 2010-1-27 16:34 编辑

14# lite1067

Yeah, I think I am wrong too.

By the way, what's DIM ? Deep In the Money?

And I don't recall anything about a 'Stock trading at PARITY' thing, only remember such statement hold true for a bond.

Explain the answer in details please.

bushbreeze · 发表于 2010-1-27 06:01 PM

DIM应该是股票代码。债券106，也就是比票面价值高6块。债券是以比自身价值高6%在二级市场交易的。

yaobooyao · 发表于 2010-1-27 06:10 PM

DIM应该是股票代码。债券106，也就是比票面价值高6块。债券是以比自身价值高6%在二级市场交易的。
bushbreeze 发表于 2010-1-27 17:01

我觉得题目有点儿misleading，它说得这个6% 好像指的是Bond Coupon Rate, 而不是Bond Yield。

另外，我怎么不记得哪里有讲“stock trading vs parity" 的概念，即使是convertible bond 也没有说它可转换的stock trading at/above/below parity 的。

jayceezhong · 发表于 2010-1-27 06:36 PM

12# ppteam

thanks..

		自动登录	找回密码
密码			注册

[知识] Series 7 question

评分

评分

浏览过的版块