CONVERTIBLE NOTES: The Debt Versus Equity Classification Problem
نویسندگان
چکیده
منابع مشابه
Optimal Debt Service: Straight vs. Convertible Debt
In this paper, we analyze the optimal default strategy of a firm when debt is convertible into equity. For this purpose, we consider a convertible consol bond in a time-independent model in the presence of bankruptcy costs and tax deductability. The optimal default and conversion strategy result from a game between equity and debt holders. We show that an optimal default of convertible debt occ...
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