You are considering investing $850 in Whichway Corporation. You can buy shares at $25; this share pays no dividends. You can also buy a convertible bond that is currently trading at $850 and has a...

You are considering investing $850 in Whichway Corporation. You can buy shares at

$25; this share pays no dividends. You can also buy a convertible bond that is currently trading

at $850 and has a conversion ratio of 30. It pays $50 per year in interest. Given you expect the

price of the share to rise to $35 in one year, which instrument should you purchase?