Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Breakeven Yield Advantage – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Friday, June 20, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Finance

  Finance   |   Terms
  • 657
  • June 28, 2021
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Breakeven Yield Advantage

The amount of time it takes for the positive yield advantage to recover the premium paid for the downside protection, regardless of the time value of money. The breakeven yield advantage can be calculated using this formula:

Breakeven Yield Advantage

For example, a convertible’ premium points, price, and current yield advantage are $20, $33, and 2.5, respectively, then:

Breakeven yield advantage = [(20/33)/2.5] x 100 = 25.24 years

This implies that it will take a bit more than 25 years to recover the premium paid for downside protection, ignoring the time value of money.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=473cba234b]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Terms

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*