The Law Dictionary

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

What is EQUIVALENT BREAKEVEN

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.

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