Investing: Something For Everyone
A convertible bond or convertible debenture bond has two major investment appeals: limited risk of price decline and the possibility of important price appreciation. The value of a convertible bond or convertible debenture must ordinarily lie within a region specified by two limits. At the lower limit, is the straight debt value of the debenture, while at the upper limit lies the conversion value as determined by the current market price of the common. It is possible for the conversion value of the common to fall below the straight debt value, but in this case the value of the debentures would most probably settle near the straight debt value.











