Allen Baker purchased ten $500 convertible bonds at face value. Each bond was convertible into 20 shares of common stock. After several years, when the stock was selling at 40, Allen converted all ten bonds. What was Allen's gain upon conversion of the bonds?

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The Answer of Allen Baker purchased ten $500 convertible bonds at face value. Each bond was convertible into 20 shares of common stock. After several years, when the stock was selling at 40, Allen converted all ten bonds. What was Allen's gain upon conversion of the bonds?

Allen Baker Purchased Ten $500 Convertible Bonds at Face Value