Question $9$

$5$ pts

Your company has bonds that mature in $12$ years and have a face value of $$1,000.$ The bonds have an $8$ percent semi$-$annual coupon $($pays $$40$ every six months$).$ The bonds may be called in five years. The bonds have a YTM of $7$ percent and a yield$-$to$-$call of $8\mathrm{.}62$ percent. Determine the bonds' call price.

$$1,100$

$$1,080$

$$1,160$

$$1,140$

$$1,120$