Olivia purchased a 20-year 5% semiannual coupon bond with a face amount of $1000 that is callable on any coupon date in the 13thth to the 20thth year:

(i) In the 13thth to 18thth year, the bond is callable at redemption amount of $1277. (ii) In the 19thth to 20thth year, the bond is callable at redemption amount of $1070.

Find the maximum price Olivia should pay in order to ensure a minimum nominal annual rate of 4% compounded semiannually.

A 1087.36

B 1127.09

C 1163.49

D 1239.14

E 1263.24