You Own a Bond That Has a Face Value of $1,000

You own a bond that has a face value of $1,000 and a conversion ratio of 18. You have been notified that the bond is being called at a premium of $30. The stock price is $56.05 a share. You should _________ your bond because the conversion value is _________.

A) Convert; less than the call price by $30
B) Convert; greater than the call price by $30
C) Convert; greater than the call price by $21.10
D) Not convert; less than the call price by $21.10
E) Not convert; greater than the call price by $30