The minimum value of a convertible bond is given by its straight-bond value or its conversion value, whichever is greater.

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The minimum value of a convertible bond is determined by the higher of its straight-bond value (the value as a regular bond without conversion features) or its conversion value (the value if converted into stock). This ensures that the bondholder receives the maximum possible value.

The Minimum Value of a Convertible Bond Is Given by Its