The Bronze Star Has 8 Percent, Semi-Annual Coupon Bonds Outstanding

The Bronze Star has 8 percent, semi-annual coupon bonds outstanding that have a face value of $1,000 and a conversion ratio of 24. The bonds mature in 14 years. Comparable, non-convertible bonds are yielding 7.8 percent. The firm also has shares of common stock outstanding at a price of $51 a share. The intrinsic value of the bonds is _____ and the conversion value is _____.

A) $1,005.23; $1,000.08
B) $1,016.86; $1,224.00
C) $1,033.76; $1,000.08
D) $1,034.11; $1,000.08
E) $1,034.11; $1,224.00