3. An example of a large issue is KfW Bank’s Aaa rated €5.0 billion (US$5.66 billion) 0.75% exchangeable debt maturing on 8/8/2008, issued in July 2003. Microsoft Corporation’s $1.25 billion 0% capped call maturing on 6/15/13, issued in June 2010, was also rated Aaa. China Petro Chemical’s step-up coupon convertible bond for Yuan 23 billion (US$3.5 billion) priced on February 2011 is another example, although the issue is unrated.

4. Although convertible bonds may be listed on the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX), they are most frequently traded in the Over-The-Counter (OTC) markets. As a result, the price levels reported in the press may not be representative of the current market price indications. SEC registered convertible preferreds usually trade on the NYSE and AMEX. 144A convertible preferreds trade on the OTC market until they are registered or are seasoned, at which time they are listed and trade on the NYSE or AMEX.