2002•Journal of Guangdong Aib Maragement CollegeRequires access
Study on the Convertible Bonds Financing
Tan Geping
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Abstract
The basic theory of convertible bond is that the company issues bonds with conversion right with which the holder can convert the bonds into common stocks of that company on the fixed price in the validity. The key issue of convertible bond is the conversion price. With a favorable conversion price, the company can make good use of advantage of convertible bonds compared with other sources of financing.