Convertible Bonds
Wu thinks about the $40 million in interest he'll be on the hook to pay for the $500 million in 8% coupon bonds that he wants to float to fund his acquisitions, let alone pay off the $500 million itself. It makes him nervous, and he is hoping to find a way to pay less in interest. He asks, "Is there a way we could get that number down to maybe 4%?" At 4% interest, he'd be on the hook for just $20 million a year, a number much easier to digest.
Net nods, "There's always a...
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