(for convertible bonds)
The value of a convertible bond calculated as a straight bond without giving any value to the conversion feature. Although this is done according to normal bond calculations, the rate used to discount the bond is that for similar, nonconvertible debt. The discount rate is likely to be two to five percentage points higher than the convertible's coupon rate.
Also called the bond value. American Banker Glossary
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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, or 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. Bloomberg Financial Dictionary
See: conversion value. Bloomberg Financial Dictionary
Financial and business terms. 2012.