ABC Ltd$.$ has issued convertible Bonds with interest rate of $14\%.$ Every Bond has an option to

convert to $20$ equity shares at any time until the time of maturity. Bonds will be redeemed at AED $100$

on maturity which is after $5$ years. An investor normally requires a rate of return of $8\%$ p$.$a$.$ on a fiveyear security. As an investor when will you exercise the conversion if CMP of equity share is a$)$

AED $5$ b$)$ AED $7$ c$)$ AED $8$