Convertible bond
A bond that can be exchanged for the issuer's shares on terms agreed in advance.
How to read the number
The holder collects a coupon and keeps the right to move into equity if the share rises. That right is paid for with a lower coupon rate.
When the metric lies
An option sits inside the instrument, so the price follows the share. Treating the issue as purely debt means ignoring most of what moves its quote.
Also known as: convertible, convertible note