The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is BOND VALUE

The lowest TRADING value of a CONVERTIBLE BOND, which occurs when the embedded equity OPTION is well OUTOFTHEMONEY and the bond is paying its normal COUPON. When a convertible is trading at bond value, its price is generally identical (or very similar) to a standard bond with the same coupon and maturity. Also known as BOND FLOOR.

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