Ten years ago, Matty's Widgets, Inc. issued new 30 year convertible bonds with a 3.5% coupon rate, compounded semi-annually. The bond has a par value of 1,000. The markets required rate of return on similar securities at the time of issuance was 3.8%, compounded semi-annually. The bond indenture indicates that there is a conversion feature and the conversion ratio is 125, that is 1 bond can be converted in to 125 shares of Matty's common stock. Today, the yield to maturity on 20 year bonds is 2.6%, compounded semi-annually and 2.8%, compounded semi-annually on 30 year bonds. The current market price of the stock is $120. You purchased the bond 10 years ago. Decide whether you should convert the bond today or sell it today by calculating the rate of return you earned while holding the bond over the 10 year period? (You must calculate the rate of return for both the conversion and the sale)