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imported>Doug Williamson |
imported>Administrator |
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| (XB).
| | ''Contract law''. |
| | | Also known as Exemption clause. |
| A straight bond with an embedded option to exchange the bond for the stock of a company other than the issuer (usually a subsidiary or company in which the issuer owns a stake) at some future date and under prescribed conditions.
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| This right is an option in favour of the holder / investor.
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| In return for this additional valuable right, the investor is generally willing to accept a lower rate of interest on the debt.
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| This saves interest for the issuer / borrower, at the cost of writing the option.
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| == See also == | | == See also == |
| * [[An introduction to equity capital]] | | * [[Exemption clause]] |
| * [[Bond]]
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| * [[Convertible bonds]]
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| * [[Embedded option]]
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| * [[Issuer]]
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| * [[Option]]
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| * [[Straight bond]]
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| * [[Subsidiary]]
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| [[Category:Long_term_funding]]
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Revision as of 14:19, 23 October 2012
Contract law.
Also known as Exemption clause.
See also