Slater Mines Just Called Its Outstanding Bonds at a Call

Slater Mines just called its outstanding bonds at a call price of $1,025. The bonds have a conversion price of $33.33 and a par value of $1,000. The stock price is currently $33.10. In response to this call, the bondholders should ________ because ________.

A) accept the call; the call price exceeds the conversion value
B) accept the call; they have no other choice
C) convert their bonds; the conversion price exceeds the par value by $37.90
D) convert their bonds; the conversion price exceeds the call price by $12.90
E) elect to continue holding their bonds; they want to continue receiving the interest payments