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B&O Railroad's convertible debentures were issued at their $1,000 par value in 1996. At any time prior to maturity on February 1, 2016, a debenture

B&O Railroad's convertible debentures were issued at their $1,000 par value in 1996. At any time prior to maturity on February 1, 2016, a debenture holder can exchange a bond for 25 shares of common stock. What is the conversion price, P_c?

a. $ 25

b. $1,000

c. $ 40

d. $1,025

e. $ 50

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