Okay, so, am I reading this whole covertible notes thing...

Okay, so, am I reading this whole covertible notes thing right?

Currently selling for circa $450.

*IF it was April 2012 now*...
Then a holder would receive
$37.5 (for final interest payment)...
+receive 1000 / 0.629 of CBH shares = 1589 shares = $158.98 @ 10c...

=$196.48.

So, you would lose $250... even though you would be entitled to the dividend payment, and are holding a bond with a face value of $1000, that you can buy for $450?


Back to the present:
SO, if the company is trading at, say, 10c in may 2012... you would have received 5 * 37.5 = $187.5 + $158.98 = $346.48.

As such, you lose around $100 per bond if the SP remains as it is?

If sp goes to, say, 60c...

You would get $953.88 + 187.5 = $1,141 from your $450?

(Yes, I've ignored compound interest.)