XYZ Corporation's 8% Coupon Convertible Bonds Are Selling at $1200

XYZ Corporation's 8% coupon convertible bonds are selling at $1200 per $1000 of face value. The current market rate on comparable bonds is 10%. The most likely explanation for this is:

A) XYZ's bonds are underrated by Moody's and Standard and Poor's Corporation
B) XYZ's stock has declined in value, making the bonds more attractive investments
C) XYZ's stock has increased in value, so these bonds are selling at their effective converted price
D) XYZ is a thinly traded company and the bonds are not efficiently priced
E) None of the above