High-premium convertible debenture(redirected from High Premium Convertible Debentures)
High-premium convertible debenture
A bond with a long-term, high-premium, common stock conversion feature. It also offers a competitive interest rate. This type of investment vehicle is aimed at bond investors who want to be able to convert into stock to hedge against inflation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
High-Premium Convertible Debenture
A convertible bond with a market price that exceeds par by a high percentage. Additionally, high-premium convertible debentures pay a relatively high coupon, and are long-term bonds. They are marketed to investors who generally invest in bonds, but wish to protect against inflation risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved