27 Bond Refunding Parto SpA has an outstanding perpetual bond with a 4 per cent coupon rate that can be called in one year. The bonds make annual coupon payments. The call premium is set at 120 per cent of par value. There is a 40 per cent chance that the interest rate in one year will be 8 per cent, and a 60 per cent chance that the interest rate will be 6 per cent. If the current interest rate is 7 per cent, what is the current market price of the bond?