A convertible bond has the following features calculate the

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Reference no: EM13575554

A convertible bond has the following features:

Coupon

5.25%

Maturity

June 15, 2027

Market price of bond

$77.50

Market price of underlying common stock

$28.00

Annual dividend

$1.20

Conversion ratio

20.83 shares

Calculate the conversion premium for this bond.

Reference no: EM13575554

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