The conversion value of a bond is the minimum price at which a convertible bond would be traded.

Question

Quizplus · Accepted Answer

The conversion value of a bond is the value of the bond if it were converted into the underlying shares today, not the minimum price at which it would be traded. The minimum trade price would more closely relate to the bond's market value, which could be influenced by factors other than just its conversion value, such as interest rates and the creditworthiness of the issuer.

The Conversion Value of a Bond Is the Minimum Price