Effective call price

Effective call price

The strike price in a market redemption provision plus the accrued interest to the redemption date.
References in periodicals archive ?
A convertible bond is characterized as being out-of-the-money if the conversion value is below the effective call price on at least one of the two days around either event.
the market price of the bond should exceed the effective call price, even though the conversion value of the bond is less than the effective call price.
Bond refunding calls where the market price of the bond exceeds the effective call price are excluded from our sample.
In this paper, we examine calls of convertible bonds in which the effective call price of the bond exceeds the conversion value.
The average aggregate effective call price (including accrued interest) of the called bonds is 13.
Characteristics of the Sample of 26 Calls of Out-of-the-Money Convertible Bonds, 1963-1987 Characteristic Mean Median Excess of effective call price over conversion value divided by effective call price (day -2) 16.
The excess of conversion value over the effective call price was -5.
The market value of the Paine Webber bond on day -2 is greater than the effective call price.
Row (3) reports that the size of the call, measured as the aggregate effective call price for the issue divided by the TABULAR DATA OMITTED market value of common equity, does not explain the stock price reaction.
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