Applies mainly to dealer securities. Fixed income value of a convertible, the price at which the convert would have to sell as a straight debt instrument relative to the yield of other bonds of like maturity, size, and quality represents a presumed floor to the bond, assuming the continued creditworthiness of the issuer and the general level of interest rates. Bond value. See: conversion value.
Nearby TermsInvestment trust Investment Valuation Model (IVM) Investment value Investment-grade bonds Investments
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University