ABC Corporation Has a $1,000 Par Value, 6% Coupon Callable

ABC Corporation has a $1,000 par value, 6% coupon callable convertible bond quoted with a price of 108. The conversion ratio is 12.5. This bond matures in 20 years. The common stock is currently trading at $79.50. The call price is 106. Comparable non-convertible and non-callable bonds sell for 92.


-The conversion price is

A) $79.50
B) $80.00
C) $84.80
D) $86.66
E) None of the above