A Firm Currently Has Outstanding a 5 Percent, $1,000 Convertible

A firm currently has outstanding a 5 percent, $1,000 convertible bond. The bond is convertible into25 shares of common stock and callable at $1,050. The current market price of the firm's stock is $41per share. If the bond is called, the bond holder will most likely

A) allow the call to be exercised.
B) do nothing and wait until the stock price goes up further.
C) convert the bond into stock.
D) sell the bond on the secondary market.