Cash amount payable to the bondholder on conversion of a bond or payable to the company by the bondholder if the adjustment is negative. It is made up as follows:

(1) Accrued interest if the term of the new bonds begins after the coupon due date of the old ones.

(2) The amount of the difference in interest if the terms overlap and interest rates differ.

(3) The price difference if the new bonds are issued above or below par value.