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You are considering investing $ 9 0 0 in Higgs B . Technology Inc. You can buy common stock at $ 2 9 . 0

You are considering investing $900 in Higgs B. Technology Inc. You can buy common stock at $29.03 per share; this stock pays no dividends. You can also buy a convertible bond ( $1,000 par value) that is currently trading at $900 and has a conversion ratio of 26. It pays $53 per year in interest. If you expect the price of the stock to rise to $42.49 per share in one year, which instrument should you purchase?
The holding period return on the purchase of the common stock would be
%.(Round to two decimal places.)M
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