the value of convertible bonds depends on conversion value. Conversion value is what the bonds would be worth if converted immediately into common stock at current prices. Conversion value is equal to current price of common stock x number of shares of common stock to be received when the bond is converted. The value of a convertible bond typically exceeds both the straight bond value and the conversion value. How would this differ when the value of the firm is low vs. when the value of the firm is high?