I have a $30 million convertible bond issue issued at the face value 20 years ago. The

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Question:

I have a $30 million convertible bond issue issued at the face value 20 years ago. The bond has another 10 years before it is redeemed .At the time of issue the company's stock sold at $30, and now it sells at $40. The conversion price was $60. Calculate the percentage of premium for the conversion price over the stock price.

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