Uranus08

Basically Minimum value is the greater of CV or SV okay? which actually is the value of the convertible bond. This does mean there is a floor where value of convertible bond can not fall below the SV but the relation it has with return is different.

Whereas the return on convertible bond is negative when stock price falls but it this negative return is SMALLER than the negative return you would have gotten by investing directly only in stock (and not in convertible bond) BECAUSE a convertible bond aside from giving you stock return is also give you coupon payments on the bond. Get it?