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You are considering investing ​$870 in Higgs B. Technology Inc. You can buy common stock at...

You are considering investing ​$870 in Higgs B. Technology Inc. You can buy common stock at ​$28.06 per​ share; this stock pays no dividends. You can also buy a convertible bond​ ($1,000 par​ value) that is currently trading at ​$870 and has a conversion ratio of 28. It pays ​$51 per year in interest. If you expect the price of the stock to rise to ​$41.19 per share in 1​ year, which instrument should you​ purchase?

The holding period return on the purchase of the common stock would be ______ . ​(Round to two decimal​ places.)

The holding period return on the purchase of the convertible bond would be _____%. ​(Round to two decimal​ places.)

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