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A convertible bond has $1,000 par, pays 3% annual coupon, matures in 4 years, and is convertible from now through maturity. Conversion ratio is 51.

A convertible bond has $1,000 par, pays 3% annual coupon, matures in 4 years, and is convertible from now through maturity. Conversion ratio is 51. The convertible bond is trading at $1,086.29 today. What is the premium over straight value of this convertible bond? Assume the yield on a comparable non-convertible bond is 4%, and annual compounding.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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