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Convertible Risk Premium

The excess of the market price of the convertible over its bond value (bond floor). It is typically expressed as…

Bond Floor

A convertible’s bond floor, or bond value (also investment value), is the discounted value of its coupons and redemption value....

Bond Floor of a Convertible

The value of a convertible bond (CB) without its conversion feature, i.e., only as a straight bond. The bond floor...