Exchangeable bond (or XB) is a type of hybrid security consisting of a straight bond and an embedded option to exchange the bond for the stock of a company other than the issuer (usually a subsidiary or company in which the issuer owns a stake) at some future date and under prescribed conditions. An exchangeable bond is different from a convertible bond. A convertible bond gives the holder the option to convert bond into shares of the issuer.

The pricing of an exchangeable bond is similar to that of convertible bond, splitting it in straight debt part and an embedded option part and valuing the two separately.

Price of exchangeable bond = price of straight bond + price of option to exchange

William Westwood "Bill" Lockyer (born May 8, 1941) is an American politician. He is the now the 32nd State Treasurer of California, elected in 2006 and re-elected in 2010. He has also served as California Attorney General and President Pro Tempore of the California State Senate. Lockyer, who has held elective office since 1973, is not able to run for a third term as Treasurer in 2014, due to term limits in California.

Described by journalistic observers as one of California's most "colorful" politicians, Lockyer has long been known to speak with a frankness that has occasionally caused political embarrassment.

Lockyer attended the University of California, Berkeley, graduating with a BA in Political Science in 1965. While in school, Lockyer founded the Cal Berkeley Democrats.^{[citation needed]} His first job was a public school history teacher.

Lockyer began his political career as a School Board member of the San Leandro Unified School District, as chair of the Alameda County Democratic Central Committee, and California coordinator of Senator George McGovern's 1972 campaign for the Presidency.

Paul Robin Krugman ( /ˈkruːɡmən/; born February 28, 1953) is an American economist, Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times. In 2008, Krugman won the Sveriges Riksbank Prize in Economic Sciences (informally the Nobel Prize in Economics) for his contributions to New Trade Theory and New Economic Geography. According to the Nobel Prize Committee, the prize was given for Krugman's work explaining the patterns of international trade and the geographic concentration of wealth, by examining the impact of economies of scale and of consumer preferences for diverse goods and services.

Krugman is known in academia for his work on international economics (including trade theory, economic geography, and international finance),liquidity traps and currency crises. He is the 17th most widely cited economist in the world today and is ranked among the most influential academic thinkers in the US.

Kenneth Saul "Ken" Rogoff (born March 22, 1953) is currently the Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University. He is also a chess Grandmaster.

Rogoff grew up in Rochester, New York. His father was a Professor of Radiology at the University of Rochester. He attended East High School.

Rogoff received a B.A. and M.A. from Yale University summa cum laude in 1975, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1980.

Early in his career, Rogoff served as an economist at the International Monetary Fund (IMF), and at the Board of Governors of the Federal Reserve System.

He is an elected member of the American Academy of Arts and Science as well as a Fellow of the Econometric Society, and a former Guggenheim Fellow.^{[citation needed]}

Rogoff was the Charles and Marie Robertson Professor of International Affairs at Princeton University.^{[citation needed]}

He later served as Economic Counsellor and Director, Research Department of the IMF, from August 2001 to September 2003.^{[citation needed]}