Business and Personal Finance Dictionary

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• INVESTMENT VALUE (FOR CONVERTIBLE BONDS)
  
  The value of a convertible bond calculated as a straight bond without giving any value to the conversion feature. Although this is done according to normal bond calculations, the rate used to discount the bond is that for similar, nonconvertible debt. The discount rate is likely to be two to five percentage points higher than the convertible’s coupon rate. Also called the bond value.
  
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