LYC Mispricing Article, page-9

I don't know where you get this idea. The way I learned it in my degree was that there are two main ways of calculating market cap; diluted and undiluted. If you want to get technical, there's also EFPOWA (equivalent fully paid ordinary weighted average) number of shares which is used for calculating earnings per share (as per AASB standards).

No matter which version you're using though, it's always today's share price that's used. I suggest you do some research on diluted market cap. I googled it for you: http://budgeting.thenest.com/market-cap-vs-fully-diluted-market-capitalization-29763.html (I only read the first few lines of the article to make sure it's relevant, no idea of the quality of the article, it was the first result on Google).

Conceptually, all those convertible bonds are essentially guaranteed to convert, therefore they are as good as an ordinary share for the purpose of calculating your individual ownership of the company.