The conversion of convertible bonds to common stock by an investor may be viewed as an exchange

Question:

The conversion of convertible bonds to by an investor may be viewed as an exchange involving no gain or loss or as a transaction for which market values should be recognized and a gain or loss reported. What arguments support each of these views for the investor and for the issuer?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...