A convertible bond has a par value of $1,000, but its current market price is $1,025. The current price of the issuing company's stock is $19 per share, and the conversion ratio is 50 . The bondholder should not exercise the conversion because the conversion premium is negative. exercise the conversion because the conversion premium is positive. not exercise the conversion option because the bond sells above par value. not exercise the conversion because the conversion premium is positive