The difference between convertible bonds and general corporate bonds

A convertible bond is a type of bond that can be converted into a bond issuer and usually has a lower coupon rate. Corporate bonds refer to the valuable bonds issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time.

The corporate bonds shall be repaid in accordance with the agreed conditions within a certain period of time, and the repayment of principal and interest shall be completed, and the corporate bonds shall be terminated; If the convertible corporate bond is converted into **, the characteristics of the corporate bond are lost, and the characteristics of ** are formed.

General corporate bonds refer to the act of the issuer issuing to investors in accordance with legal procedures and agreeing to repay principal and interest within a period of more than one year. The issuance of convertible corporate bonds refers to the act of issuing corporate bonds that can be converted into shares within a certain period of time according to the agreed conditions issued by the issuer to investors in accordance with legal procedures.

A convertible bond is a type of bond that can be converted into a bond issuer and usually has a lower coupon rate. Essentially, a convertible bond is an option attached to the issuance of a corporate bond, allowing the purchaser to convert the bond they purchased into a specified company** within a specified time frame.

Bond is a kind of financial contract, which is issued to investors when financial institutions, industrial and commercial enterprises, etc. directly borrow from the society to raise funds, and at the same time promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has the force of law. The bond purchaser or investor and the issuer are in a creditor-debt relationship, with the bond issuer being the debtor and the investor (bond buyer) being the creditor.

A bond is a valuable one**. Since the interest rate on a bond is usually determined in advance, a bond is a type of fixed interest rate (fixed rate). In countries and regions with developed financial markets, bonds can be listed and circulated. In China, the more typical ** bonds are treasury bills.

Hello, the similarities and differences between convertible bonds and general corporate bonds:

Similarities: Convertible bonds and callable bonds are both bonds, except for the "convertible" of the former and the "callable" of the latter, their other properties are exactly the same as ordinary bonds; They both have bond properties and option properties.

Differences: Convertible bonds can be converted into **, and investors can choose to convert their holdings of bonds into a certain amount of ** according to a predetermined **; Callable bonds can only be bonds forever.

Unlike the subject, convertible bonds give investors an option, and no company can force investors to convert; Investors who can redeem the bonds can redeem the bonds early, and the issuer can also recall the bonds in advance.

Depending on the timing, a convertible bond is a bond in which the bondholder can exchange the bond for a predetermined number of company** bonds within a certain period of time, and the callable clause of the callable bond usually takes effect several years after the bond is issued (usually five years).

This information does not constitute any investment advice, and investors should not use such information as a substitute for their independent judgment or make decisions based solely on such information.

Convertible bonds are bonds that can be freely converted into the company's ** within a specified period, exchangeable bonds refer to bonds that can be traded, and general book-entry bonds are tradable bonds.

Answer when choosing original and can solve the problem, to upgrade, thank you!

The creditor who should choose the CD convertible bond has the right to convert the bond to **, so choose D, because the creditor is given this special right, so the price of the bond will be reduced, so the issuance ** is different, and C is also selected.

The difference between exchangeable corporate bonds and convertible bonds is that they are different in nature, exchangeable bonds are issued by the shareholders of the company, and after the maturity of the bonds, the bank can choose to exchange with the shareholders who issued the bonds and exchange the bonds for the company's **. Convertible bonds are issued by a company, and there is an option to convert the bonds into a company in accordance with a pre-signed agreement upon maturity.

[Legal basis].Article 21 of the Administrative Measures for the Issuance of Listed Companies.

Convertible corporate bonds can only be converted into the company after six months from the date of issuance, and the conversion period is determined by the company according to the duration of the convertible bonds and the company's financial situation. Bondholders have the option to convert** or not to convert the Blind Bridge Notes, and become shareholders of the issuing company on the day following the conversion.

Answer]: This is a distinction made according to the different functions of corporate bond rights. Ordinary corporate blind bonds are referred to as corporate bonds, which are the general form of corporate bonds; Convertible corporate bonds refer to corporate bonds issued by the issuing company in accordance with the law and can be converted into shares within a certain period of time according to the agreed conditions.

1. What is the convertible corporate bond Convertible bond is a bond in which the bondholder can convert the bond into the company's ordinary bond according to the agreement at the time of issuance. If the bondholder does not want to convert, they can continue to hold the bond until the repayment period expires to receive the principal and interest, or liquidate it in the liquid market**. If the holder is optimistic about the value-added potential of the bond issuer, he can exercise the right to convert the bond into ** according to the silver dust predetermined conversion after the grace period, and the bond issuer shall not refuse.

The interest rate of the bond is generally lower than the interest rate of the bond of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the cost of financing. Holders of convertible bonds also have the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bonds under certain conditions. 2. How should the ** of convertible corporate bonds be determined?

If a listed company issues convertible corporate bonds, it shall be based on the average of the first month of the issuance of convertible corporate bonds, and a certain amount of increase shall be used as the conversion of shares. In addition, convertible corporate bonds are issued at par value, with a face value of $100 each, and the minimum trading unit is $1,000. The maturity of convertible corporate bonds is a minimum of three years and a maximum of five years, which is agreed between the issuer and the lead underwriter according to the specific circumstances of the issuer.

If a key state-owned enterprise issues convertible corporate bonds, it shall be based on the one to be issued by the company through air sale, and a certain percentage of the discount shall be used as the conversion of shares. 3. What is the maximum number of bonds that a company can issue? The law has certain restrictions on the issuance of bonds by companies, and the accumulated bond balance of the company cannot exceed 40% of the company's net assets.

The accumulated bond balance refers to the total amount of corporate bonds issued by the company, except for the bonds that have been repaid with principal and interest at maturity. This total cannot exceed 40% of the company's net fighting assets. To sum up, if you want to publicly issue bonds of convertible companies, then there are relatively strict requirements, you need to make profits for three consecutive years, and you need to prove your economic strength, before issuing convertible bonds, you need to compare your own situation to meet the above conditions, and you can only issue bonds after you meet them.