You are considering investing

$890

in Higgs B. Technology Inc. You can buy common stock at

$30.69

per share; this stock pays no dividends. You can also buy a convertible bond ($1,000 par value) that is currently trading at

$890

and has a conversion ratio of

26.

It pays

$52

per year in interest. If you expect the price of the stock to rise to

$43.63

per share in one year, which instrument should you purchase?

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

enter your response here%.

(Round to two decimal places.)