A 10-year convertible bond pays an annual coupon of 6 percent, has a yield to maturity of 5 percent, and a par value of $1,000. The bond is convertible to 50 shares of common stock at $20 per share. Today's stock price is $27.50 per share. What is the bond's floor value?

$1,000

$1,060

$1,300

$1,375