The amount by which the price of a convertible bond goes above the market price of the underlying stock.
The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued.
The difference between the price of a convertible bond or preferred share and the underlying equity conversion value. For example, if the convertible trades at US$100 and the underlying shares trade at US$80, the conversion premium is US$20 (or 25 percent). Convertibles with high conversion premiums are traded in the same say as straight bonds, while convertibles with low premiums are traded as underlying shares would be.
The amount, expressed as a dollar value or as a percentage, by which the price of the convertible security exceeds the current market value of the common stock into which it may be converted.
The difference between the price of the convertible and the conversion value, expressed as a percentage of the conversion value.
Refers to the percentage above parity at which the convertible security is trading. Conversion Premium is calculated as follows: (Convertible Price – Conversion Value) divided by Conversion Value
