The Steyert Company has debentures ($1,000 par value) outstanding that are convertible into the companys common stock at a price of $50 per share. The convertibles have a coupon interest rate of 9 percent and mature 20 years from today. Straight debt of equivalent risk is yielding 12 percent. In addition, the convertible is callable at 115% of par value. The companys common stock today is selling for $52 per share. The company has a marginal tax rate of 25 percent. Calculate the conversion value of the issue.

Group of answer choices

a. $1,200

b. $1,000

c. $962

d. $1,040

e. $833