A company has an 7% bond that has a face value of $1,000 and matures in 30 years. Assume that coupon payments are made semi-annually. The bonds are callable after 15 years at 108% of par value. What is the value of the bond if rates drop immediately to 5%?

A) $716

B) $1,942

C) $1,309

D) $1,247

E) $1,209