Yield Advantage

外汇网2021-06-19 16:25:23 153

The relationship between convertible securities and the pidend yield of the common stock of the same issuing corporation. The yield advantage is the additional amount of return an investor can expect to earn if a convertible security is purchased instead of the common stock.

Taobiz explains Yield Advantage

The yield advantage is calculated by subtracting the pidend yield of common stock from the rate of return on a convertible security. Determining this calculation helps investors decide if it is advantageous to retain the convertible security or exchange it for common stock.

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