Lucinda Owns a Convertible Bond That Matures in Six Years

Lucinda owns a convertible bond that matures in six years.The bond has a 9 percent coupon and pays interest annually.The face value of the bond is $1,000 and the conversion price is $22.Similar bonds have a market return of 8.75 percent.The current price of the stock is $21.60 per share.What is the conversion value of this bond?

A) $835.60
B) $848.40
C) $942.11
D) $981.82
E) $1,000.00