A company has an 8% 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 6%?

$1,277

$2,192

$1,452

$1,229

$602

Include explanations please.