A 45 Percent,semi-Annual Coupon Bond Has a Face Value of $1,000

A 4.5 percent,semi-annual coupon bond has a face value of $1,000 and a time to maturity of 4 years.The bonds are convertible into shares of common stock at a conversion price of $42.50.The stock price currently is $40.70.Similar,non-convertible bonds have a yield to maturity of 4.5 percent.The intrinsic value of this bond is ________ and the conversion value is ________.

A) $832.62; $982.80
B) $961.06; $957.65
C) $1,014.16; $1,017.50
D) $1,014.16; $982.80
E) $1,006.96; $1,017.50