(40 points) calculate the total holding period return on the Red Hat convertible bond described in the link below, between June 30, 2017 and August 31, 2017. Make use of the last trade prices observed on June 30, 2017 and August 31, 2017. Do not annualize the return. Show your work. For this bond, the conversion ratio, 13.6219 shares per $1,000 in principal, represents a conversion price of approximately $73.41 per share.

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C641229&symbol=RHAT4298849

(20 points) Calculate the total holding period return on Red Hat stock (RHT) using data from Yahoo Finance, between June 30, 2017 and August 31, 2017. Make use of the closing prices on June 30, 2017 and August 31, 2017. Do not annualize the return. Show your work.

(40 points) Provide an explanation of the holding-period return on the convertible bond, based on the various economic factors that go in to the pricing of a convertible corporate bond. Use data and news from the financial markets to back up your explanation.