A Convertible Bond Has a $1,000 Par Value, a 7

A convertible bond has a $1,000 par value, a 7 percent, semi-annual coupon, and a time to maturity of 11 years. The bond has a conversion ratio of 12. Comparable, non-convertible bonds have a yield to maturity of 6.8 percent. What is the intrinsic value of this bond?

A) $1,015.15
B) $1,015.32
C) $1,016.28
D) $1,016.41
E) $1,016.54