John Wick examining a convertible bond issued by Facebook. It has a face value of $1,000 and it is trading at $1,100 in the secondary market. The bond pays a 2% chupon and owner has the right to convert it into 50 shares of stock. The stock is trading at $21 a share. If John buys the convertible bond, should he convert it to common right away or hold it and collect the interest payment until the bond matures? Do not convert Convert