need a full explanation please. STEP BY STEP please

Question 9 0 out of 4 points On Friday, April 13 ABC stock closes at $25.41. ABC 8% Convertible debenture closes X at 99. 163. After the closing bell ABC announces that the debenture will be called at 102.000. The debenture is convertible into common stock at $25.00 per share. What is this $1,000 bond worth (round $ two places after the decimal)? Selected Answer: 1,016.4 Correct Answer: 1,020.00+ 0.01 Response Feedback conversion value = conversion ratio x market price of stock if greater than $1,020 conversion value = $1,020 if conversion ratio x market price of stock is less than $1,020 conversion ratio = $1,000/25 = 40