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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…

Busted Convertible Bond

A convertible bond (CB) whose value is pulled down by a declining stock (its potential equity participation). In other words, the…

Bond Value of a Convertible

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

Bond Floor

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

Straight Bond Value

The present value of future cash flows of a convertible bond as if it was a straight corporate bond, i.e.,...

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...

Investment Value of a Convertible

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

Investment Value

The value of the “straight” fixed income element of the convertible alone, without consideration to the value of the convertible’s...

Bond Value

The value of the “straight” fixed income element of the convertible alone, without consideration to the value of the convertible’s...

Bond Discount

The amount by which a bond's price falls below its maturity value (i.e., par value). In other words, it is...