Nick Andrews, a fixed-income investment analyst, has been asked by his supervisor to prepare an analysis of the convertible bond issued by Heavy Element Inc., a chemical industry company, for presentation to the investment committee. Andrews has gathered the following data from the convertible bond’s prospectus and market information:

Issuer: Heavy Element Inc.

Issue Date: 15 September 2020

Maturity Date: 15 September 2025

Interest: 3.75% payable annually

Issue Size: $100,000,000

Issue Price: $1,000 at par

Conversion Ratio: 23.26

Convertible Bond Price on 16 September 2022: $1,230

Share Price on 16 September 2022: $52

As a result of favorable economic conditions, credit spreads for the chemical industry narrow, resulting in lower interest rates for the debt of such companies as Heavy Element. All else being equal, the price of Heavy Element’s convertible bond will most likely:

A. Decrease significantly.

B. Not change significantly.

C. Increase significantly.