Filter by Categories
Accounting
Banking

Finance




Total Price of a Convertible


The price of a convertible as quoted including its two components the clean price and accrued interest (or accrued coupon). The total price of the bond is the actual price in the market- i.e., the price paid for the bond:

Total price of a convertible = clean price + accrued coupon

For example, if the clean value of a convertible is $500 and its accrued coupon is $10, then:

Total price = 500 + 10 = $510

Or in percentage terms:

Total price = 100% + 2% = 102%

Euroconvertibles (especially French convertibles) that have domestically traded tranches are often quoted using total price.

The total price is also known as gross price of a convertible.



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*