Because nothing can ever leave the event horizon black holes are essentially perfectly sticky.
So, using those relativistic definitions for energy and momentum, I think you're exactly right, at least up to the part about "since the final object is at rest". However:
- As I understand it, invariant mass, aka "rest mass" (which is equivalent to "rest energy", aka "rest mass energy"), is invariant, and it's the same before and after the collision, so the kinetic energy doesn't get "converted into rest mass energy". Rather, if the final object is at rest, then all of its kinetic energy has been radiated away; kinetic energy (E_K) is is total energy (E) minus rest energy (E_0 = mc^2, where m is invariant mass)
- I have no idea whether gravitational waves are the only way for the kinetic energy to be radiated away. I imagine other forms of energy could also be emitted.
- In order to know that the final object is at rest/has no kinetic energy (in an inertial frame), I worry that we might need to have specified more in the original question. In particular, I don't know how to handle spin. (I know that black holes have some concept of "spin", but I don't know if this is like rotational spin, or more like quantum mechanical spin, or something else, and I don't know how it figures into the black holes' total energy.) If we change the original question to say that the black holes are not spinning, then I think we can ignore this (since the collision is head-on).
[1]: https://en.wikipedia.org/wiki/Mass_in_special_relativity#Rel...
To reiterate, I'm not a physicist. I may be off base here, but that's my understanding.
No, outgoing gravitational waves could carry out energy and momentum. This is not a closed system. Nobel prize 1993