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Corso Books has just sold a callable bond. It is a thirty-year semiannualsemiannual bond with an annual coupon rate of 11% and $1,000 par value.

Corso Books has just sold a callable bond. It is a thirty-year semiannualsemiannual bond with an annual coupon rate of 11% and $1,000 par value. The issuer, however, can call the bond starting at the end of 8 years. If the yield to call on this bond is 12% and the call requires Corso Books to pay one year of additional interest at the call (2 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date?

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