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Imagine that as an investor you are debating the following purchases: A $2,000 convertible bond with a 5% interest rate that matures in 10 years

Imagine that as an investor you are debating the following purchases:

A $2,000 convertible bond with a 5% interest rate that matures in 10 years with a convertible ratio of 100 for each convertible bond.

A callable bond with a face value of $10,000 with a callable price of 105.

Which is the better investment? Why?

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