Orient Airlines' common stock currently sells for $32, and its 8.0% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 26 shares of common stock at any time before 2028. What is the conversion value of the bond? Do not round your intermediate calculations.
A. $915.20
B. $1,040.00
C. $956.80
D. $832.00
E. $748.80
Answer: D
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