Can I bake in a convection microwave?
I've baked bread in a convection microwave with some succes. It's a far cry from what you can achieve with a good electric oven, but you can get some decent results. Certainly a poor to average microwave-sized electric oven will perform about the same as a decent convection microwave combination.

Just remember to turn the microwave funtion off entirely. I once accidentally microwaved a loaf instead of baking it, and I have never seen so much smoke in my apartment. 

So if you're expecting to do a lot of baking, I'd ditch the microwave aspect and buy a good microwave-sized electric oven (the Rowenta OC7868 or the Breville BOV800XL are good options). Since your current microwave still works, I'd only go for a convection microwave if you absolutely only have room for a single microwave-sized appliance.