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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Conversion premium
Ideally the market value of convertible bond and conversion value converges in the future and the convertion premium becomes minimal. However what are the implications if an investor chooses to convert early ? I understand he will end up incurring more cost to acquire the share than buying directly on the stock exchange..
Kindly confirm are there any more implications to this investor decision?
