Definitions for "Conversion Factor"
A dollar value to 4 decimal places used as a multiplier by HCFA when calculating reimbursement rates. The CF is updated annually to allow for inflation. Many payors will base their reimbursement rates on a CF slightly different from Medicare's but maintain the other multipliers.
a ratio of equivalent units used to express the relationship between quantities expressed in different units.
A conversion factor is a fraction that relates one unit to another. Multiplying a measurement by a conversion factor changes the units of the measurement. For example, since 1 in = 2.54 cm, to convert 10 inches to centimeters, (10 in) 2.54 cm 1 in= 25.4 cm
For the credit futures markets, it is the number that relates different coupons and acceptable deliverable maturities for delivery against the contract standard of an 8 percent coupon and the stipulated acceptable time remaining to maturity specifications. For the security markets, it is the contractual number that indicates how many shares a convertible security can be exercised into at any point in time.
A figure published by the CBOT used to adjust a T-Bond hedge for the difference in maturity between the T-Bond contract specifications and the T-Bonds being hedged.
A factor used to equate the price of T-bond and T-note futures contracts with the various cash T-bonds and T-notes eligible for delivery. This factor is based on the relationship of the cash-instrument coupon to the equired 8 percent deliverable grade of a futures contract as well as taking into account the cash instrument's maturity or call.
A percentage applied to a number (eg an Adult TV rating to obtain a different number (eg a Women 15-34 rating).