Conversion Ratio Calculator

✖Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.ⓘ Par Value at Maturity [P_vm]			+10% -10%
✖Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.ⓘ Conversion Price of Equity [CP_equity]			+10% -10%

✖Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.ⓘ Conversion Ratio [CR]

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Formula

✖

Conversion Ratio

Formula

`"CR" = "P"_{"vm"}/"CP"_{"equity"}`

Example

`"2"="1100"/"550"`

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Conversion Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Conversion Ratio = Par Value at Maturity/Conversion Price of Equity
CR = P_vm/CP_equity
This formula uses 3 Variables

Variables Used

Conversion Ratio - Conversion Ratio is calculated by dividing the par value of the convertible bond by the conversion price.
Par Value at Maturity - Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.
Conversion Price of Equity - Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.

STEP 1: Convert Input(s) to Base Unit

Par Value at Maturity: 1100 --> No Conversion Required
Conversion Price of Equity: 550 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CR = P_vm/CP_equity --> 1100/550

Evaluating ... ...

CR = 2

STEP 3: Convert Result to Output's Unit

2 --> No Conversion Required

FINAL ANSWER

2 <-- Conversion Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 14 Fixed Income Securities Calculators

Accrued Interest

Go Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)

Conversion Premium

Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Convexity Adjustment

Go Convexity Adjustment = Bond's Convexity*(Change of Yield^2)*100

Callable Bond Price

Go Callable Bond Price = Non Callable Bond Price-Call Option Price

Nominal Yield

Go Nominal Yield = (Total Annual Interest Payments/Face Value)*100

Expected Loss

Go Expected Loss = Default Probability*Loss Severity given Default

Putable Bond Price

Go Putable Bond Price = Non Putable Bond Price+Put Option Price

Conversion Value

Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

Go Floating Interest Rate = Reference Rate+Fixed Spread

Dirty Price

Go Dirty Price = Clean Price+Accrued Interest

Clean Price

Go Clean Price = Dirty Price-Accrued Interest

Semi Annual Bond Equivalent Yield

Go Semi Annual Bond Equivalent Yield = Yield per Semi Annual Period*2

Loss Severity

Go Loss severity = 1-Recovery Rate

Conversion Ratio Formula

Conversion Ratio = Par Value at Maturity/Conversion Price of Equity
CR = P_vm/CP_equity

What is Conversion Ratio?

The conversion ratio is the number of common shares received at the time of conversion for each convertible security. The higher the ratio, the higher the number of common shares exchanged per convertible security. The conversion ratio is determined at the time the convertible security is issued and has an impact on the relative price of the security. The ratio is calculated by dividing the convertible security's par value by the conversion price of equity.

How to Calculate Conversion Ratio?

Conversion Ratio calculator uses Conversion Ratio = Par Value at Maturity/Conversion Price of Equity to calculate the Conversion Ratio, The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security. Conversion Ratio is denoted by CR symbol.

How to calculate Conversion Ratio using this online calculator? To use this online calculator for Conversion Ratio, enter Par Value at Maturity (P_vm) & Conversion Price of Equity (CP_equity) and hit the calculate button. Here is how the Conversion Ratio calculation can be explained with given input values -> 2.2 = 1100/conversion_price.

FAQ

What is Conversion Ratio?

The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security and is represented as CR = P_vm/CP_equity or Conversion Ratio = Par Value at Maturity/Conversion Price of Equity. Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond & Conversion Price of Equity is the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.

How to calculate Conversion Ratio?

The Conversion Ratio is the number of common shares received at the time of conversion for each convertible security is calculated using Conversion Ratio = Par Value at Maturity/Conversion Price of Equity. To calculate Conversion Ratio, you need Par Value at Maturity (P_vm) & Conversion Price of Equity (CP_equity). With our tool, you need to enter the respective value for Par Value at Maturity & Conversion Price of Equity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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