A convertible bond pays interest annually at a coupon rate of 4 percent on a par value of $1,000. The bond has 5 years maturity remaining and the discount rate on otherwise identical non-convertible debt is 7 percent. The bond is convertible into 50 shares of common stock. Today's closing stock price was $18. What is the floor value of this bond?

Multiple Choice

$1,000.

$880.

$900.

$1,050

$800.