Hope someone can help explain the two concepts below:
"Negative convextivy does not apply to convertible bond. " if the convertible bond has call option, can it have negative convextiy?
Question 14 on Residual Income Chapter from Kaplan EOC. It states that "Zues uses Residual income mmodel …the currect rate method of foreign currency translation and reported translations gains. If he revises his valuation estimate, what is the impact on book value?
The answer says that "book value was not affected, however, because the gains were recorded to equity. What is the difference between equity and book value? I always thought they are the same things.