The additional amount an investor in a CONVERTIBLE BOND pays above CONVERSION PARITY to acquire the bond, generally expressed as a percentage of parity: where PCB is the price of the convertible bond and Convpty is conversion parity. See also ADJUSTED BREAKEVEN , CONVERSION PRICE , CONVERSION RATIO , CONVERSION VALUE, EQUIVALENT BREAKEVEN , INVESTMENT PREMIUM , SIMPLE BREAKEVEN .
Black’s Law Online Dictionary
