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Sir according to sources of finance chapter conversion value is current MV of shares to be received. But I have seen in many questions the current market value we get is higher than the MV of bonds. Does this mean “negative” conversion premium is possible?
I am surprised you have seen many questions asking for the conversion premium – it has only been mentioned twice in the history of Paper F9 !!
Calculating the current market value of convertible debt has often been asked, but that is nothing do to with the conversion premium.
Theoretically the conversion premium could be negative, but if so then there is just not conversion premium. To state a negative figure would mean nothing.
I didnt mean questions relating to conversion premium. I meant general questions relating to conversion like of calculation of MV.
Oh okay.
Got it. Thanks
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