Artificial Intelligence Company Ltd $($AIC$)$ is a very successful AI company and was listed on the Main Board of the Hong Kong Stock Exchange five years ago. Due to its excellent financial performance, its shares are currently trading at $$45$ per share as compared to its IPO price at $$3.$Also, AIC has issued a convertible bond with maturity date at end of $2034$ and $8\%$ interest payable on a semi$-$annual basis. The convertible bond has a face value of $$10,000$ and a conversion price of $$50.$ Conversion may take place at any time over the next two years. The current market price of AICs convertible bond is $$9,500$ and the non$-$convertible coupon bond of similar quality is currently yielding $10\%$ payable on a semi$-$annual basis.Assume that it is now the end of $2024$ and the convertible bond interest has already been paid. Financial experts and market consensus expect AICs share price to rise at $12\%$ per year. AIC is a fast growing company and relies heavily on its retained earnings for reinvestment and therefore, you do not expect any dividends to be paid for the coming years.As an investor of AICs convertible bond, decide which of the following actions you would choose by calculating the payoff from each action.

a$)$ Hold the bond until maturity.

b$)$ Sell the bond immediately.

c$)$ Convert the bond to shares now.

d$)$ Convert the bond at the end of the second year.