Conversion value: Difference between revisions
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'''Example''' | |||
each | Convertible bonds are in issue, each of which may be exchanged for 40 ordinary shares. | ||
The ordinary shares are currently trading in the market at £2 each. | |||
The conversion value is given by: | |||
= 40 x £2 | = 40 x £2 | ||
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== See also == | == See also == | ||
* [[Convertible bonds]] | * [[Convertible bonds]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 20:37, 27 June 2022
Convertible bonds.
The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option).
Example
Convertible bonds are in issue, each of which may be exchanged for 40 ordinary shares.
The ordinary shares are currently trading in the market at £2 each.
The conversion value is given by:
= 40 x £2
= £80.
