Is interest earned from convertible note added to the cost base in the schedule of investments when the note converts to preferred?

Yes, the interest earned from a convertible note is typically added to the cost base in the schedule of investments when the note converts to preferred. The interest is usually converted into additional shares of preferred stock at the time of conversion. The cost base becomes the original investment amount plus the accrued interest at the time of conversion. However, the specifics can vary based on the terms of the convertible note agreement and the fund's accounting policies.