Question: 3. A convertible bond has the following features: Conversion Ratio 20.83 shares Market Price of Underlying Stock $28.00 Annual Division $1.20 Market Price of Bond

3. A convertible bond has the following features: Conversion Ratio 20.83 shares Market Price of Underlying Stock $28.00 Annual Division $1.20 Market Price of Bond $77.50 Maturity 15 June 2030 Coupon 5.25% What is the conversion premium of this bond? (3 Points)

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