There is a 10-year convertible bond. It is a par bond with face value of $1000. The annual coupon rate is 8% and each bond can be converted to 20 common stocks. The yield of a similar non-convertible bond is 10%. The stock price is $40.00 with a constant dividend growth rate of 5.00%. Calculate the floor price of this convertible bond at the end of Year 3. This is an annual bond.

A. $794.01

B. $835.81

C. $898.65

D. $879.80

E. $926.10