A 6 Percent, Semi-Annual Coupon Bond Has a Face Value

A 6 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 $40. The stock price currently is $40.70. Similar, non-convertible bonds have a yield to maturity of 5.6 percent. The intrinsic value of this bond is _____ and the conversion value is _____.

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