A convertible bond is an obligation that is issued with the option that the subscriber can exchange them for shares or other obligations of the issuer, which facilitates placement in the market and Trade Alert Scanner
This conversion of the bonds into shares will be profitable when the benefit of the dividend is higher than the coupon. This can also apply because they want to provide greater liquidity to the asset if the action is quoted on the secondary market. To do this, the conversion you must specify the following: conversion date, required rating (usually 100% plus accrued interest), the number of shares to be converted and the valuation of shares, which may be a fixed price or fixed price as quoted.
To calculate the conversion ratio, you should divide the share price and the price of the given obligation.
