Reading Railroad's common stock is currently priced at $30, and its 8 percent convertible debentures (issued at par, or $1,000) are priced at $850. Each debenture can be converted into 25 shares of common stock at any time before 2005. What is the conversion price, CP, and the conversion value of the bond?

a. $25.00; $1,000

b. $25.00; $ 750

c. $40.00; $ 750

d. $40.00; $ 850

e. $40.00; $1,000