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A $1000 bond with semi-annual coupons at j 2 = 8% is redeemable at 99 in 10 years. It is callable at 105 in 5

A $1000 bond with semi-annual coupons at j₂ = 8% is redeemable at 99 in 10 years. It is callable at 105 in 5 years. Determine the highest purchase price to guarantee a yield of at least j₂ = 7%.

A.
$1066.04
B.
$1071.06
C.
$1077.03
D.
$1086.42

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