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Percentage Premium
(redirected from Percentage Premiums)

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Percentage premium
Applies mainly to convertible securities. Premium over parity of a convertible bond divided by parity.

Percentage Premium
The amount the price of a convertible bond exceeds its parity, expressed as a percentage. Convertible bonds may be traded like most bonds, and fluctuate in price like all securities. When its market value equals the value of the underlying common stock, the bond is said to have parity. When a convertible bond trades at a premium, this means that it is more expensive than the current value of the underlying. A convertible bond may trade at a premium if the issuer has a good credit rating and/or if investors believe that the price of the common stock will rise again.


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The findings also indicate that the percentage premiums for water views are greatest in Christchurch, which has the smallest percentage of properties with water views, and lowest in Wellington, which has the highest percentage of properties with views.
Average percentage premiums were calculated as a weighted mean (summation of frequency of respondents by percentage premium category).
Percentage premiums automatically reflect increases in hourly pay rates, but cents-per-hour premiums (the principal type used) require adjustment to keep pace.
 
 
 
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