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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: michael97123 who wrote (49516)7/20/2001 12:18:41 PM
From: willcousa  Respond to of 70976
 
Haven't studied this zero coupon issue but generally they are sold at a discount to face value. The discount represents the amount of interest the market demands for a bond issued at the discount price. Thus, I would be surprised if they got the full $1000 for the bond.

In a convertible the conversion feature also generally has a value. You hope that your stock goes up enough to get the bonds converted