Level II CFA: Convertible Bonds Demystified

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[@rahulbajaj1786]

What if the bond is not issued at par ? Then what will be the conversion ratio ? Would it still be ( face value/conversion price ) ???

[@IFT-CFA]

conversion ratio represents the number of shares for which one bond may be exchanged. It is calculated as par value / conversion price. This would be the case even if the bond is not issued at par. IFT Support Team

[@megaraghav007]

If conversion option is exercised, will the investor get coupon payments ?