Assertion: convertible bond's value | /r/HasProperty | equal
Facets:
value: to the maximum
type: OTHER
value: to the proceeds
type: OTHER
value: to the price
type: OTHER
value: as of the issuance date
type: TEMPORAL
Source sentences:
text: This approach assumes that the value of the equity portion is equal to the difference between the total amount received from the proceeds of the bonds and the present value of future cash flows from the bonds.
text: This is known as the residual approach to calculation of equity component which assumes that value of the share option is equal to the difference between the total issue proceeds of the convertible bonds and the present value of future cash flows using the interest rate of a similar debt instrument without the option to convert into shares.
text: The straight debt yield input into the convertible debt valuation model, like the lattice model above, is solved for so that the aggregate fair value of the convertible note is equal to the proceeds as of the issuance date.
text: If the bifurcation exercise is performed as of a subsequent valuation date, a similar framework will be used with the exception that the aggregate fair value of the convertible debt is equal to the traded value of the bond.
text: ﻿﻿﻿As shown in the example above, the value of the converted preferred share is equal to the market price of common shares multiplied by the conversion ratio.
text: What this means is that if we discounted all the cash flows from the bond using the yield to maturity as the discount rate, then the present value of the cash flows would be equal to the price paid for the bond; or to put it another way, the net present value of all cash flows relating to the investment in the bond are zero.
text: The value of the portfolio consisting of all the convertible bonds at the date of maturity is equal to the maximum of: