Question: You own a convertible bond that has a conversion rate of 35. It matures in 4 years, pays annually, 8% coupon rate, and has a

You own a convertible bond that has a conversion rate of

You own a convertible bond that has a conversion rate of 35. It matures in 4 years, pays annually, 8% coupon rate, and has a yield of 5%. If the stock price is currently $40, what is your gain or loss if you convert? (Enter a positive value for gain and negative value for loss)

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