1. An investor purchases a $1000 par bond maturing in 17 years with 7% semiannual coupon. The bond is callable after the 7th coupon date. The redemption value from the 8th through the 20th coupon date is $1060, if the bond is called during those dates. The redemption value from 21st through the 34th would be at par. Determine the price that would ensure the investor a minimum yield rate of 5% compounded semiannually.