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6. You bought an XYZ Corp $1,000, 5% convertible bond for $1,000. It has a conversion feature allowing you to convert the bond into 50

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6. You bought an XYZ Corp $1,000, 5% convertible bond for $1,000. It has a conversion feature allowing you to convert the bond into 50 shares of XYZ common stock. a. (10 points) At what stock price would converting the bonds into stock result in a break even trade? b. (10 points) One year from now, the stock price is $25. Convert the bond, sell the stock at $25, add in the bond interest, and calculate the total return in dollars and as a yield of the original $1,000 investment

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