I stuck on the third one, why is it 1250 ?

On January 1,2023 , Majestic Corp. issued $2,200,000 of convertible bonds with a coupon interest rate of 9% that matured in seven years. Interest was payable semi-annually on June 30 and December 31 each year. Each $1,000 bond was convertible into 100 common shares at the investor's option on the dates specified in the bond indenture. The bonds sold for $2,316,194, yielding 8%. Similar bonds without the conversion feature were yielding 10%. Majestic also has a stock option plan for its management team. On October 1,2023, the company issued 4,000 options to employees to buy common shares at $40 per share. An option pricing model valued these options at $25 each. The options vested four years after issuance. Required Requirement b. Prepare the journal entries to record the issuance and expiration of stock options. Begin by preparing the entry related to the issuance of stock options during the year. (Record debits first, then the first line of the Accounts column, and leave all other cells blank. Round amounts to the nearest dollar.) Required a. Prepare the journal entry to record the issuance of the bonds on July 1, 2023. b. Prepare the required journal entry on the December 31,2023 , year-end date related to the issuance of the stock options. Assume that management estimated a forfeiture rate of 10%