iven the following interest rate information:

i.r. (present time) = 3.6%; i.r. (year 1, up) = 4.2%; i.r. (year 1, down) = 3.3%

i.r. (year 2, up-up) = 4.7%; i.r. (year 2, up-down) = 4.1%;

i.r. (year 2, down-down) = 2.9%

What is the current value of a 4.0% annually-paid coupon, 3-year callable bond with a par value of $1,000 and a call price of $1,000 throughout years 1-3 only (i.e. with no call option during present time)?

$1,089.16

$978.16

$1,001.16

$1,019.16

$1,036.16