Apple issues a callable bond with maturity of 10 years. The yield is 0.10 which is the same as the coupon rate. At the end of year 2, the yield will be either 0.2 with 40% probability or 0.05. The bond is callable at the par value ($1,000) plus two additional coupon payments. The tax rate is 40%. For simplicity, assume annual coupons. What is the price of the callable bond?