You observe a convertible bond issued by BetaCorp trading at $875. It has four years until maturity, an annual coupon rate of 2% (assume annual payments), and a conversion ratio of 40 which means that the bond can be converted to 40 shares of the BetaCorp stock. BetaCorps current stock price is $20. You may assume the following term structure of interest rates: 1 year 6.0%, 2 year 6.5%, 3 year 6.8%, 4 year 7.0%.

If the BetaCorp bond were not convertible, show that its straight price today would roughly be $831.07