Financial instruments can be real or virtual documents representing a legal agreement involving any kind of monetary value. Equity-based financial instruments represent ownership of an asset. Debt-based financial instruments represent a loan made by an investor to the owner of the asset. Our services cover the following instruments:
IFRS 13
Fair Value Measurement
IFRS 9
Financial Instruments
IFRS 2
Share-based Payment
IAS 32
Financial Instruments: Presentation
IAS 39
Financial Instruments: Recognition and Measurement
Convertible Bonds Valuation
A convertible bond is a type of debt security that can be converted into a predetermined amount of the underlying company’s equity at certain times during the bond’s life, usually at the discretion of the bondholder. Convertible bonds are a flexible financing option for companies and are particularly useful for companies with high risk/reward profiles.
Stock dividend yield =
stock dividend
stock price
Conversion ratio =
convertible market price
conversion price
Conversion value =
stock price
conversion ratio
Other Variables
stock price
stock dividend
convertible market price
maturity (years)
conversion price