Corporate Finance & Valuation
Fixed Income & Bond Analytics
IntermediateCertificate$9.99
Convertible Bonds: Conversion Value, Premium, Bond Floor & Dilution
Conversion ratio and parity, conversion premium and payback, the bond floor with PV and PRICE, the investment premium and payoff chart, bond + Black-Scholes call valuation, the issuer’s cost and IFRS-style liability/equity split, dilution and if-converted EPS, calls, puts and forced conversion: 8 labs on one fictional issuer (educational, not investment advice).
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What you'll build
What you will be able to do
Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.
- Turn the bond terms into the conversion ratio, the conversion value (parity) and the market conversion price.
- Compare five convertibles: parity, conversion premium, income advantage over the shares and the payback period.
- Value Norrow’s convertible as if it were a plain bond, check it with PRICE and see how the floor moves with the credit spread.
- Measure the premium over the bond floor, build the lower bound max(parity, floor) for share prices from 10 to 100 and chart the payoff profile.
- Value Norrow’s conversion option with Black-Scholes, add it to the bond floor and see whether the bond trades rich or cheap.
- Calculate Norrow’s cash saving, split the convertible into a liability and an equity component (IFRS-style) and build the five-year interest table.
- Count the new shares, measure the dilution and calculate Norrow’s diluted EPS with the if-converted method.
- Calculate the soft-call trigger, test six share-price scenarios for a call and value the holder’s put.
About this course
A convertible bond behaves like debt when the share price is low and like equity when it is high. This course lets you measure both sides. You calculate the conversion ratio, conversion price and parity, then the conversion premium, income advantage and payback period. The bond floor is valued as a straight bond, and the investment premium and payoff profile are charted across share prices. A simple valuation adds a call option priced with Black-Scholes to the bond floor. From the issuer's view you compare cost with straight debt and split liability and equity. Final labs calculate if-converted EPS dilution and the effect of call and put features. For finance students, analysts and investors.
Curriculum
Course content
8 lessons · 8 labs · 1.8 h · final exam
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Unlocked when you buy the course
- Final exam
Certificate
Finish with a certificate you can verify
Complete every lesson and pass the final exam to receive a certificate of completion for this course, with a unique credential ID and a public verification page.
- Names the course, your score and the date of issue
- A verification link for your CV or LinkedIn profile
- 12 questions, 75% to pass, unlimited retries.
A Tutorvo certificate confirms that you completed a course. It is not an official or professional qualification.
Before you buy
Questions about this course
Is this a subscription?
No. You pay $9.99 once for this course. There is no subscription and nothing renews automatically. Prices are in US dollars; taxes may be added where required.
What exactly do I get?
All lessons and labs of this course, the final exam and the certificate, including later updates to the course, for as long as Tutorvo offers it. Access is personal and tied to your account.
Can I get a refund?
Yes. If you are not satisfied, email hello@tutorvo.com within 14 days of buying and we refund the course in full via Stripe. The guarantee does not apply once a certificate for the course has been issued to you, or where there are signs of abuse.
When can I start?
Right after payment. Access starts immediately at your request; for consumers in the EU/EEA the statutory right of withdrawal therefore ends once access has begun, while our 14-day money-back guarantee applies regardless.
Do I need Excel or other software?
No. The labs run in a spreadsheet inside your browser on a laptop, tablet or phone. Function names and syntax follow Excel.
Is the certificate an official qualification?
No. It confirms that you completed all lessons of the course and passed its final exam. It is not an official, state-recognised or professional qualification. The name is taken from your profile when the certificate is issued.
Full details are in our Terms · hello@tutorvo.com
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