A bond with a face value of $5,000 can be exchanged for 70 shares of stock. The bond has a coupon rate of 6.5% which equals the market rate of interest. Assume the option premium is $50. What is the market value of the bond if the stock is selling for $68.90 a share and the bond matures in exactly one year?

a. $4,744.84

b. 4,873

c. 5,000

d. 4,940

e. 5,050