Finding the conversion premium


Problem 1: A convertible bond is currently selling for $1335. It is convertible into 20 shares of common which presently sell for $56 per share. What is the conversion premium?

Problem 2: A convertible bond is currently selling for $945. It is convertible into 15 shares of common which presently sell for $57 per share. What is the conversion premium?

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Finance Basics: Finding the conversion premium
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