What is conversion premium?Conversion Premium

How much a convertible's price exceeds its conversion value, in percent; the lower it is, the more stock-like the convertible, the higher, the more bond-like.

Learn “conversion premium” in an animated lesson

Bonds & Fixed Income
Convertible Bonds: Bond Floor + Conversion Right
A bond you can swap for stock: when the stock is weak, the bond floor holds it up; when the stock soars, it rises with it. Drag the stock price and watch it switch between "bond" and "stock".

Related terms

convertible bond
conversion price
conversion value
bond floor

See how “conversion premium” works for yourself with an animation you can drag and play.

Go to “Convertible Bonds: Bond Floor + Conversion Right”