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Question 7 2 pts A convertible bond has $1,000 par, pays 5% annual coupon, matures in 3 years, and is convertible from now through maturity.

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Question 7 2 pts A convertible bond has $1,000 par, pays 5% annual coupon, matures in 3 years, and is convertible from now through maturity. Conversion ratio is 46. The convertible bond is trading at $1,065.67 today. What is the premium over straight value of this convertible bond? Assume the yield on a comparable non-convertible bond is 3%, 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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