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A convertible bond has the following features: Coupon 5.25 June 15, 2020 Maturity $77.50 Market price of bond Market price of underlying common stock $28.00

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A convertible bond has the following features: Coupon 5.25 June 15, 2020 Maturity $77.50 Market price of bond Market price of underlying common stock $28.00 $1.20 Annual dividend 20.83 shares Conversion ratio Calculate the conversion premium for this bond

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