2. Conditional redemption clause: For the issuance of convertible bonds during the conversion period, the company has the option to redeem all or part of the convertible bonds at face value plus current accrued interest under the following two circumstances: during the conversion period, the closing price of the company's shares is not less than 65,438+030% of the current conversion price for at least 20 consecutive trading days;
If the transfer price is adjusted within the above 30 trading days, the calculation of the trading day before the transfer price adjustment shall be based on the transfer price of the trading day before and after the adjustment of the transfer price and closing price, and the adjusted transfer price and closing price shall prevail.
When the balance of convertible bonds issued this time is less than 30 million yuan. Please note that the redemption clause actually contains three conditions, namely, redemption at maturity; Compulsory redemption; The balance is not enough to redeem. The terms and conditions of convertible bonds may vary from company to company, but they are basically the same. Even if the definitions are different, the content is basically the same, which is nothing more than these three situations.
The redemption clause and the insufficient balance redemption clause are easy to understand. The key is the mandatory redemption clause: "During the conversion of convertible bonds into shares, if the closing price of the company's shares is not less than 65,438+030% (including 65,438+030%) for at least 20 consecutive trading days, the company has the right to decide the redemption price of all or part of the non-convertible bonds plus the current accrued interest".
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Main advantages:
Because convertible bonds can be converted into stocks, it can make up for the low interest rate. If the market price of a stock exceeds its conversion price during the conversion period, the bondholder can convert the bond into a stock to obtain greater income.
In addition to the interest rate of convertible bonds, the most critical factor affecting the income of convertible bonds is the conversion conditions of convertible bonds, which is also commonly known as the conversion price, that is, the face value of convertible bonds required for conversion into one share.
For example, security convertible bonds, the face value of each convertible bond is 1 yuan, and every 25 convertible bonds can be converted into 1 share. The conversion price of convertible bonds is 25 yuan, and the maximum net assets per share of security shares does not exceed 4 yuan, so the conversion conditions of security bonds are quite high.
When the market price of the stock to be converted reaches or exceeds the conversion price of the convertible bond, the price of the convertible bond will be linked to the stock price. When the stock price is higher than the conversion price of convertible bonds, the yield of buying convertible bonds is the same as that of investing in stocks when the stocks rise. But when the stock price falls, the risk of convertible bonds is much smaller than that of stocks.
Because of its convertibility, when the underlying stock price rises, the bond price will also rise, and there is no limit to the rise and fall. In addition, there is the possibility of arbitrage between bond prices and stock prices. Therefore, when the benchmark stock price rises in a bull market, the yield of bonds will be more stable.
Baidu encyclopedia-convertible bonds