Answer the below questions if the price of the common stock declines from $23 to $8

What will be the approximate return realized from investing in the convertible bond?

What will be an ideal response?

There is currently no conversion value and with such a low price of $8 it is doubtful if the convertible bond is selling at much of a premium. However, there is a 9.5% coupon payment so that would be realized each year it is paid even if there nothing to be gained from conversion or selling the bond at a premium.