Convertible Bond Analysis Fifteen years ago, Roop Industries sold $400 million of convertible bonds. The bonds had a 40 -year maturity, a 5.75% coupon rate, and paid interest annually. They were sold at their $1,000 par value. The conversion price was set at $61.50, and the common stock price was $56 per share. The bonds were subordinated debentures and were given an A rating; straight nonconvertible debentures of the same quality yielded about 9.00% at the time Roop's bonds were issued. a. Calculate the premium on the bonds - that is, the percentage excess of the conversion price over the stock price at the time of issue. Do not round intermediate calculations. Round your answer to two decimal places. 96