Consider a bond with the following characteristics: 13 years to maturity, 10.20% coupon rate, interest paid semi-annually, $1,000 par value, $1,015 call price, and no call protection. Assume that rates change to 3.40% and that the transaction cost is $132 .

What is the present value of liability at interest rate of 3.40%?

a) 1709.7163

b) 1714.7326

c) 1719.3934

d) 1705.0202