Once the market price of shares rises above the conversion price on convertible bonds, the bond ceases to trade as debt, and is effectively traded as equity.

Name: Once the market price of shares rises above the conversion price on convertible bonds, the bond ceases to trade as debt, and is effectively traded as equity.
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Convertible bonds continue to trade as debt until the holder decides to convert them into equity, regardless of the market price of the shares relative to the conversion price.

Once the Market Price of Shares Rises Above the Conversion