Question: A $1000 par value convertible bond has a conversion price of $50. It is currently selling for $1120 despite the fact that the bond's coupon

A $1000 convertible bond has a conversion price of $50. It is currently selling for $1120 despite the fact that the bond's rate and the market rate are equal. The obtained upon conversion is selling for $54 per share. What is the convertible bond's conversion premium?

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