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Lowell Inc. has bonds which mature in 1 0 years, and have a face value of $ 1 , 0 0 0 . The bonds

Lowell Inc. has bonds which mature in 10 years, and have a face value of $1,000. The bonds have a 10 percent semi-annual coupon (i.e., the nominal coupon rate is 10 percent). The bonds may be called in two years. The bonds have a nominal yield to maturity of 8 percent and a yield to call of 7 percent. What is the call price (FV) on the bonds ?
(Hint: First calculate price and then use that to get FV (call price))
$1015.73
$1092.73
$1068.81
$1043.18

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