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The Conversion Premium is the amount by which the current price of a convertible security exceeds the current market value of the stock into which it may be converted.

For example, a bond with a price of $110, convertible into 20 units of stock, trading at $5.10 (totalling $102) would have a conversion premium of $8.

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Q: What does it mean for a bond to be issued at a discount or premium?
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