Diluted EPS and Convertible Debt Does the after tax interest add back for convertible debt require the amount of the coupon interest paid for the period of the earnings per share computation Explain ...

This would only be correct if the bonds are issued at par ...

Diluted EPS and Convertible Debt. Does the after-tax interest add-back for convertible debt require the amount of

Question:

Diluted EPS and Convertible Debt. Does the after-tax interest add-back for convertible debt require the amount of the interest paid for the period of the earnings per share computation? Explain.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...