The number of shares for which the convertible can be exchanged. ie: Conversion ratio = 50.50, means that one bond can be exchanged for 50.50 shares of the underlying common shares.
The value of the convertible bond if converted into the underlying common shares. ie: Conversion ratio x price of common shares
CONVERSION VALUE PREMIUM (%):
The percentage by which the price of the convertible bond exceeds the conversion value. ie: Price of the bond is $130 and the conversion value is 100, the premium over conversion value is 30%.
The price at which the convertible bond would likely trade if it were not convertible. In other words, the price at which a "straight" (non-convertible) bond would trade.
INVESTMENT VALUE PREMIUM (%):
The percentage by which the price of the convertible bond exceeds its investment value. ie: Price of the bond is $130 and the price of the investment value is $100, the premium over investment value is 30%.
The price the convertible may be called at. When an issue is called, holders have about 30 days to decide whether or not to convert.
"HARD CALL" PROTECTION:
Most convertible bonds, at issue, will be protected from being called for a period of on or more years. "Hard call protection" means that the issue cannot be called for any reason during the specified period.
The interest payment on a bond. Bonds are almost always issued with a par value of $1000, it is also the price at which they will be redeemed at maturity. An 8% coupon, pays $80 in interest a year. Normally paid semi-annually.