Attempts: Keep the Highest: /4 4. Convertible bonds, warrants, and other exotic bond features AaAa As the name suggests, convertible bonds allow the owner the option to convert the bonds into a shares of common stock. fixed number of Jorge bought APJ Inc.'s convertible bond at par ($1,000) with a yield of 3.25%. This bond had a conversion ratio of 25:1 at the price of $40 per share. If AP) Inc.'s shares are currently trading at $48 per share, should Jorge convert his bond into shares? Which of the following are most likely to have higher yields? O Convertible bonds O Nonconvertible bonds Consider the case of an investor, Nazim: Nazim wants to include putable bonds in his investment portfolio. Nazim is likely to put the bonds when: O He has reinvestment options with lower yields O He has reinvestment options with higher yields Nazim also recently bought bonds with a clause stating that interest will be paid based on the inflation rate. When the inflation rate increases, the interest on the bonds will also increase. Nazim has invested in