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High-Premium Convertible Debenture

[high-PREE-mee-um kuhn-VUR-tuh-bul dih-BEN-chur]

What is the definition of High-Premium Convertible Debenture?
A type of bond that features a long-term maturity, offers a high premium for conversion into common stock, and provides a competitive interest rate.
Using High-Premium Convertible Debenture in an Example

A company issues a high-premium convertible debenture that allows investors to convert their bonds into shares of the company's common stock at a premium price, higher than the current market value. This bond also pays an attractive interest rate, making it appealing for both conservative investors seeking regular income and those interested in potential capital gains through conversion.

Using High-Premium Convertible Debenture in a sentence

The financial advisor recommended adding high-premium convertible debentures to the portfolio to benefit from both the stable income of bonds and the growth potential of stocks.

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In the context of mortgage-backed securities, half-life refers to the point in time at which half of the principal amount of the security has been repaid.
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High-Low Method

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Historical Cost

The original cost of an asset to an entity at the time of its acquisition, recorded on the financial statements.
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Holding Period

The duration between the acquisition and the sale or disposition of an asset by a taxpayer.
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