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An investor purchases a 1,000 bond that pays 8.00% semi-annual coupons and matures in 10 years. The bond has 5 years of call protection and

An investor purchases a 1,000 bond that pays 8.00% semi-annual coupons and matures in 10 years. The bond has 5 years of call protection and can be called at any time after that point at par. Taking into account the call option, what is the maximum price the investor should pay to earn a 7.00% compounded semi-annual yield?

Group of answer choices

$1,025

$1.042

$1,057

$1,071

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