You are considering investing $820 in Higgs B. Technology Inc. You can buy common stock at $23.43 per share; this stock pays no dividends. You can also buy a convertible bond ($1,000 par value) that is currently trading at $820 and has a conversion ratio of 31. It pays $48 per year in interest. If you expect the price of the stock to rise to $32.58 per share in 1 year, which instrument should you purchase?

The holding period return on the purchase of the common stock would be 39.05%

The holding period return on the purchase of the convertible bond would be _____% (round to two decimal places)