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?

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The Answer of 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?

Erik Wells Bought a Sandia Corporation Convertible Bond for $1,000