Convertible bonds that have no chance of being converted are called hung convertibles. The idea here is that if the investors don’t wish to convert their bonds into the firm’s equity, the conversion process is hung up. The bond is worth more as a bond than it is worth converted into equity. APB No. 15 and FASB No. 55 require a firm to provide EPS information under either circumstance and let the market participant choose which measure is more meaningful.