Van Gogh Furniture has issued a zero-coupon 10-year bond that can be converted into 15 Van Gogh shares. Comparable nonconvertible bonds are yielding 8.20%. Van Gogh stock is priced at $52 a share. If you had to make a now-or-never decision on whether to convert or stay with the bond, which would you do? Assume a face value of $1,000 per bond.

• Convert

• Stay with the bond