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Van Gogh Furniture has issued a zero-coupon 10-year bond that can be converted into 12 Van Gogh shares. Comparable nonconvertible bonds are yielding 9.00%. Van

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Van Gogh Furniture has issued a zero-coupon 10-year bond that can be converted into 12 Van Gogh shares. Comparable nonconvertible bonds are yielding 9.00%. Van Gogh stock is priced at $60 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

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