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Don't go to your exam hungry. I recommend grass and berries, but you might want your brain food to be a little more substantial.

Convertible Bonds

Convertible Bonds

Willy tries to bring Facebook's wily CFO and board back to reality a half step by opening the door to the magical wonderland called convertible bonds. Convertible bonds are just bonds with an embedded call option in them to convert the bonds into equity, a.k.a. shares of stock in a given company. 

Willy explains the dynamics of convertibles into Facebook equity shares. If "market" for a vanilla debenture (low-end bond) is about 8%, the way that Mark can get to a 4% kind of interest tab is to...

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