In 2006, Merrill Lynch became the leading book runner for the $ 5 billion of convertible bonds to Mogen, Inc, which is one of the largest bond issue convertible into history. Capital Merrill Lynch derivatives group should convince the Mogen Get coupon and conversion premium Mogen and potential investors in this regard. This pricing decision requires students to understand the concept of evaluation as convertible bonds plus the sum of the direct conversion option. To value the conversion option as an option requires an assessment of the Black-Scholes model, the volatility of the input to be particularly complex. Case is designed for students who already have a basic knowledge of the assessment bonds and options pricing principles and working with students, MBA, and executive education audiences. The instructor may choose to teach the case in one class period or two. "Hide
by Kenneth Eades, Alex Holsenbeck Source: Darden School of Business 15 pages. Publication Date: October 14, 2008. Prod. #: UV1054-PDF-ENG
Related Case Solutions & Analyses:
Trade Restrictions and Hong Kongs Textiles and Clothing Industry
Nectar: Making Loyalty Pay
Motorcowboy: Getting a Foot in the Door B
Currency Crises in the United Kingdom and Hong Kong
Philip McCrea: Once an Entrepreneur … (B)
Work is Good: Branding the EmployAbility Mission
SABIS – A Global Educational Venture From Lebanon
Accounting Fraud at World Com
Woodmere Properties, Inc.
Rushway Brothers Lumber and Building Supplies (RLBS)
