You are considering the purchase of a portion of a convertible bond issue by the Muro Co$.$ These bonds have a face value of $$1,000,$ pay $1\mathrm{.}75\%($annual$)$ coupons, mature in four years and have a conversion ratio of $54\mathrm{.}347826.$

You have analyzed several straight bonds issued by this firm that have similar times$-$to$-$maturity, and you have concluded that the straight$-$bond equivalent value of the convertible instrument is worth $$850.$

The stock of the Muro Co$.$ is currently trading for $$15\mathrm{.}25,$ you guess that the Sigma of the stock is $0\mathrm{.}45,$ and the prevailing rate on a four$-$year Treasury bond is $3\mathrm{.}95\%.$

Based on these parameters, what is a reasonable value for these convertible bonds?