A bond has a $1,000 par value, six years to maturity, and pays a coupon of 8.25% per year, annually. The bond can be called in two years at 105% of its par value. If the bonds yield to maturity is 7.1% per year, what is its value?

Question 6 options:

A)

$1,066.23

B)

$1,072.65

C)

$1,085.28

D)

$1,061.60

E)

$1,054.65