Determining whether a Convertible Security is a Common Stock Equivalent—an amendment of APB Opinion No. 15 (Issued 2/82)
APB Opinion No. 15, Earnings per Share, states that a convertible security is a common stock equivalent if it has a cash yield at the time of issuance of less than 66 2/3 percent of the then current bank prime interest rate. The Board has concluded that the prime rate should be replaced as the benchmark interest rate in the cash yield test. This Statement substitutes the average Aa corporate bond yield as the new benchmark rate.