Okay, so, am I reading this whole covertible notes thing right?
Currently selling for circa $450.
*IF it was April 2012 now*... Then a holder would receive $37.5 (for final interest payment)... +receive 1000 / 0.629 of CBH shares = 1589 shares = $158.98 @ 10c...
=$196.48.
So, you would lose $250... even though you would be entitled to the dividend payment, and are holding a bond with a face value of $1000, that you can buy for $450?
Back to the present: SO, if the company is trading at, say, 10c in may 2012... you would have received 5 * 37.5 = $187.5 + $158.98 = $346.48.
As such, you lose around $100 per bond if the SP remains as it is?
If sp goes to, say, 60c...
You would get $953.88 + 187.5 = $1,141 from your $450?
(Yes, I've ignored compound interest.)
CBH Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
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