Conversion value

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Revision as of 15:12, 20 September 2014 by imported>Doug Williamson (Added more space so that calculations are clearer)
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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).


For example:

each convertible bond may be exchanged for 40 ordinary shares,

and the ordinary shares are currently trading in the market at £2 each,

then the conversion value

= 40 x £2

= £80.


See also

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