Convertible Bonds Sample Calculations

In this video, we walk through some sample calculations with a hypothetical convertible bond. We calculate the conversion ratio (given the conversion price), conversion value, pure bond value, conversion premium, and downside risk. In addition, we explain how to interpret these calculations. Finally, we close by identifying the bond as equity sensitive, interest rate sensitive, or hybrid and explain how we identified that bond and what we mean by these terms.

[@hcab8118]

Excellent video, thank you