MEGAZONEMANUFACTURING plc has issued €10,000,000 worth of convertible bonds with a 7% coupon (interest payable on the face or par value of the bond), which mature in three years. The €100 par value bonds are trading currently at €112. An investor has asked you whether she should convert the bonds to ordinary shares, as this is the last day of the conversion period. The terms specify a conversion price of €2.50, and the share sells currently for €2.85. Explain what the investor should do and why. State any necessary assumptions.