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Please help me out:

I'm new to these exchanges. I bought BAC preferred J at $5.50, with a huge corresponding interest rate at that price. The stock has since more than tripled. I am still getting a great interest rate of over 10%. Stock price today is over 18, and the exchange offer is for $18.75.

What possible advantage is there for me to exchange for commons? Seems like I have a great deal. What are the risks of holding the preferred? If they go down, the interest rate goes up. If they go up, they go up.

If I want to book the profit, what is the difference between just selling the preferreds vs. exchanging, then selling the commons? Wouldn't the commons be diluted by the exchange and thus begin to lose value?

I would appreciate someone's wiser experience here.

Thank you.
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