EQM Corp. issues convertible bonds with a US$ 1,000 par value per bond that is 5 years to maturity and has a 4% coupon (annual pay). The conversion ratio is 40 (per bond). The common equity shares do not receive dividends, a policy which is not likely to change. EQM Corp. announces a stock split of 2:1 (two for one). Will there be any likely change to the convertible bonds? If so, what will the change be?

A)The new conversion factor will be increased to 80.

B)The new conversion factor will be reduced to 20.

C)The new conversion factor will be decided by the company's board of directors.

D)Nothing will change.