A convertible bond pays interest annually at a coupon rate of 6 percent on a par value of $2,000. The bond has 20 years maturity remaining and the discount rate on other-wise identical non-convertible debt is 4 percent. The bond is convertible into shares of common stock at a conversion price of $40 per share (i.e., the bond is exchangeable for 50 shares). Today's closing stock price was $45.50. What is the oor value of this bond?

a	$800.00
b	$3,000
c	$1,250
d	$2,275