How to Calculate Conversion Premium?
Conversion Premium calculator uses Conversion Premium = Conversion Value-Market Price of Convertible Bond to calculate the Conversion Premium, The Conversion Premium is the premium the bondholder will have over the conversion value. Conversion Premium is denoted by CP symbol.
How to calculate Conversion Premium using this online calculator? To use this online calculator for Conversion Premium, enter Conversion Value (CV) & Market Price of Convertible Bond (MP_{CB}) and hit the calculate button. Here is how the Conversion Premium calculation can be explained with given input values -> 5 = 100-95.