Tenebrous,
Thank you for your courteous response to my questions about converting the CYMI bond. As I stated, this is my first ever venture into convertible bonds and I know very little about them, obviously. I do not intend to convert my bonds at this time, but as an investor I thought it appropriate to try to better understand my holding, its potential, and my options. I very much appreciate your sharing your time and knowledge with a beginner in this arena.
So bottom line is: Hold onto the bond, because it is like owning CYMI and getting a dividend, too.
Can anyone answer the other questions I asked about calculation of basis for tax reporting? Is that handled similarly to the exercise of a call option such that your basis is the total of strike plus the premium and costs paid, and the capital gains time period dates from the purchase of the option? Or does the IRS handle this differently? If so, how?
Once again, thank you for your courteous and logical reply.
jbn3. |
