You are considering investing $$800$ in Higgs B$.$ Technology Inc. You can buy common stock at $$25\mathrm{.}00$ per share; this stock pays no dividends. You can also buy a convertible bond $($ $$1,000$ par value$)$ that is currently trading at $$790$ and has a conversion ratio of $30.$ It pays $$40$ per year in interest. If you expect the price of the stock to rise to $$33\mathrm{.}00$ per share in one year, which instrument should you purchase?

The holding period return on the purchase of the common stock would be $32\%.($Round to two decimal places.$)$

The holding period return on the purchase of the convertible bond would be $\%.($Round to two decimal places

WHAT IS THE CONVERTIBLE BOND?