Answered
Erik Wells bought a Sandia Corporation convertible bond for $1,000. The bond was convertible to 50 shares of stock. At the time of the purchase, the stock was selling for $20 per share. At the end of two years, the stock was selling for $28 per share. Erik converted his bond. Assuming the market value of the bond had not changed, how much profit did Erik realize by converting?
On May 16, 2024