Corso Books has just sold a

callable bond

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.

It is a thirty-year

monthly

bond with an annual

coupon rate

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of

7%

and

$1,000

par value. The issuer, however, can call the bond starting at the end of

6

years. If the

yield to call

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on this bond is

11%

and the call requires Corso Books to pay one year of additional interest at the call

(12

coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date?