**FEATURES OF CONVERTIBLE DEBENTURES**
Following are the features of convertible debentures:
Conversion ratio: It refers to the number of shares every convertible debenture is exchanged into. It can be represented on the basis of per centum (or per 100) or per debenture.
Conversion price: The face value per share on which the conversion is carried out
Conversion premium: It denotes the difference between the parity value of the convertible debenture and the market value of the convertible debenture
Conversion value or parity value: Conversion ratio * equity price
Call features: The issuer of convertible debenture has the option of calling a convertible debenture ahead of time (in case of specific types of debentures). However, on certain occasions, this happens according to the performances of particular stock prices. The aim behind this is to motivate the investors regarding early changeover to stocks (that has got higher value in comparison to the par value of the debenture) through forbidding cash repayment for the lesser current value.