Dockrell's Enterprises is considering issuing a 20-year convertible bond that would be priced at its $1,000 par value. The bonds would have an 10.00% annual coupon, and each bond could be converted into 20 shares of common stock. The required rate of return on an otherwise similar nonconvertible bond is 12.00%. In the previous years the stock was sold for $60.00, however it currently sells for $40.00 a share, has an expected dividend in the coming year of $2.00, and has an expected constant growth rate of 6.00%. Assuming that the bonds will be converted at year 5, when they become callable, what will be the expected return on the convertible when it is issued?(14 marks)