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No one's got a neck quite as thick as Gaston...except for buffalo. Every last inch is covered in hair? We got that, too.

Convertible Bonds

Willy tries to bring Facebook’s wily CFO and board back to reality a half step--and does so--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, aka shares of stock in a given company. 

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

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