Convertible Bond
From Open Risk Manual
Definition
Convertible Bond. Bond that gives the holder the right to convert the bond into a fixed number of shares (conversion ratio) if the equity price rises above a specified level (strike price)
If the equity price remains below the strike price throughout the term of the bond it matures and is redeemed like a regular bond. The conversion ratio and strike price are usually set when the convertible bond is issued.
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
Facts about "Convertible Bond"
| IsDefinedBy URI of an entity that is defined via an imported vocabulary. | https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/Bonds/index-en.html + |
