A measure of the number of years it takes for an investor to recover the initial CONVERSION PREMIUM paid in acquiring a CONVERTIBLE BOND, typically computed as: where Convprem is the conversion premium, C is the COUPON, Convratio is the CONVERSION RATIO, and DPS is DIVIDENDS per share. See also ADJUSTED BREAKEVEN, SIMPLE BREAKEVEN.

More On This Topic

Link to This Definition
Did you find this definition of EQUIVALENT BREAKEVEN helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary