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6. A convertible bond has the following features. What is the conversion premium of the bond? Coupon-5.25% Maturity: June 15, 2025 Market price of bond

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6. A convertible bond has the following features. What is the conversion premium of the bond? Coupon-5.25% Maturity: June 15, 2025 Market price of bond $77.50 Market price of underlying common stock = $28.00 Annual dividend = $1.20 Conversion ratio = 20.83 shares

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