You are told Next Level Ltd issued 20 million 4-year 5% convertible bonds amounting to $50 million. The applicable market rate is 10% and the conversion rate is 5 ordinary shares for every $100 held. The bonds will be repaid at a $10 million discount in the fourth year. The applicable PV interest factors for years 1 to 4 are 0.9091, 0.8264, 0.7513, and 0.6830. What is the value of the equity component of the instrument at inception? Select one: a. $8.722 million 0 b. $8.227 million c. $14.977 million d. $14.756 million