CHAPTER 21
Convertible Debentures and Warrants
LEARNING OBJECTIVES
- Explain the features and effects of convertible debentures.
- Explain the valuation of convertible debentures and calculate it.
- Discuss features of warrants.
- Calculate the value of warrants.
- Discuss the features of zero-interest debentures or deep-discount bonds.
INTRODUCTION
There are two ways of making fixed-income securities attractive to investors. A company can issue convertible securities and warrants to ensure the success of its debt issue. Convertible securities, particularly convertible debentures, are popular means of raising funds. Warrants are also becoming popular in the Indian capital market now. There have been many issues of warrants in recent years. We shall ...
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