HKSI Paper 7
(Set B)

HKD 188

60 Questions

3 Apr 2025

HKSI Paper 7 Exam Question

HKM Corporation issues a 5-year convertible bond of HKD1,000 par value with a coupon of 5%. The conversion ratio is 25. After 5 years, the stock price climbs to HKD50. What is the maximum net profit an investor can make per convertible bond he owns?

a) HKD250

b) HKD500

c) HKD1,000

d) HKD1,500

The HKSI LE Paper 7 Exam comprises of 60 questions, time given is 90 minutes and the passing rate is 70%.

 

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    HKSI Paper 7
    (Set A)

    Add to cart HKD 188

    60 Questions

    3 Apr 2025

    HKSI Paper 7 Exam Question

    If the interest rate of a debt security issued by a company is higher than the benchmark rate of a HK government bond, it will sell at a:

    a) discount

    b) premium

    c) parity value to the government bond

    d) price dictated by the government