A 12-year maturity convertible bond with a 5% annual coupon on a company with a bond rating of AAA is selling for $1,088. Each bond can be exchanged for 25 shares, and the stock price currently is $40 per share. Other AAA-rated bonds with the same maturity would sell at a yield to maturity of 9%. What is the value of the implicit call option on the bond (show work for partial marks)? Value of the bond= PV of interest+maturity amount