Break-even calculations (contd) Dollar maintenance market price-conversion value coupon market price stock price stock dividend The time it takes for the convertible yield advantage to pay for its premium compared to an equivalent dollar amount purchased of the underlying stock May use conversion ratio instead of market rice/ stock pr price7 Break-even calculations (cont’d) Dollar maintenance The time it takes for the convertible yield advantage to pay for its premium compared to an equivalent dollar amount purchased of the underlying stock. • May use conversion ratio instead of market price/ stock price. market price – conversion value coupon - stock dividend market price stock price =