Bond value

Definition:

With respect to convertible bonds, the value the security would have if it were not convertible. That is, the market value of the bond minus the value of the conversion option.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Agency theory

The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio