QWE wishes to issue a perpetual callable bond (par value =$1,000 ) that pays 7.1% annual coupon. The current interest rate is 8.5%. Next year, the interest rate will be 3.6% or 8.9% with equal probability. The bond is callable at $1,064, and it will be called if the interest rate drops to 3.6%. What is the issue price of this callable bond