Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- BREAK-EVEN TIME (FOR CONVERTIBLE SECURITIES)
The amount of time before the higher yield on the convertible bond compared to an otherwise similar nonconvertible bond compensates the investor for the excess cost of the convertible over the common stock. Usually calculated by using current yields rather than the coupon and dividend rates.Back