The face value of a convertible, i.e., the value that a holder redeems at maturity. The market price of a convertible converges with its par value at maturity. Before that, a less than par market price reflects a premium. For example, if the conversion ratio is 20 and the market share price is currently at $40, then the conversion value, $800, means that the bond’s par price represents a $200 premium. Except for zero-coupon convertibles, redemption is always at par or some premium to par. For nonpremium put convertibles, the par value is also the redemption value at final maturity.