Allison Yu purchased five $1,000 convertible bonds at face value. Each bond was convertible into 25 shares of common stock. After several years, when the stock was selling at 46, Allison converted all five bonds. What was Allison's gain upon conversion of the bonds?​

Convertible Bonds

Bonds issued by a company that can be exchanged by the holder for a predetermined number of the company's shares.

Common Stock

A type of security that represents ownership in a corporation and entitles its holder to a share of the company's profits through dividends and/or capital appreciation.

Face Value

The nominal value or dollar value stated on a financial instrument, such as a bond or stamp.