Smith, Inc. is considering the issuance of a 20-year convertible bond that will be priced at par value of $1,000 per bond. The bonds carry a 12% annual coupon interest rate and can be converted into 40 common shares. The shares are currently priced at $20 per share, with an expected annual dividend of $3 and is growing at a constant 5% annual rate. The bonds are callable after 10 years at $1,050, with the price declining by $5 per year. If, after 10 years, the conversion exceeds the call price by at least 20%, management is likely to call the bonds. What is the conversion price?