High-premium convertible debenture
A bond with a long-term, high-premium, common stock conversion feature. It also offers a competitive interest rate. This type of investment vehicle is aimed at bond investors who want to be able to convert into stock to hedge against inflation.
Nearby TermsHighly confident letter Highly leveraged transaction (HLT) High-premium convertible debenture Highs High-tech stock
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University