Convertible Bond Calculator
Calculate conversion ratio, premium, and floor value for convertible bonds
| Conversion Shares | 20 (20.00) |
| Conversion Value | $120.00 |
| Conversion Premium | -8.33% |
| Floor Premium | 15.79% |
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What is this tool?
Convertible bond calculator computes conversion value, conversion premium ratio, and the number of shares you'd receive upon converting a convertible bond into stock. Essential for evaluating whether conversion is financially advantageous versus holding the bond.
How to use
- 1
Enter bond details
Input face value, conversion price, and current bond price.
- 2
Enter stock price
Input the current stock price.
- 3
View conversion metrics
See conversion value, premium ratios, and share count.
Frequently Asked Questions
When should I convert?
When the stock price significantly exceeds the conversion price and the premium ratio is near zero or negative.
What is conversion premium ratio?
It measures how much more the bond trades for versus its conversion value. A high premium means the bond is expensive relative to the underlying stock.
Can I lose money converting?
Yes, if the stock price drops after conversion. The bond's floor value protection is lost upon conversion.