The YTM on a 6-month $10 par value zero-coupon bond is 10%, and the YTM on a 1-year $10 par value zero-coupon bond is 14%. These YTMs are semiannual BEYs. What would be the arbitrage-free price of a 1-year bond with coupon rate of 20% (semiannual payments) and par value of $1000? Assume that this bond is issued by the same company as the zero-coupon bonds.

A. $1056.02

B. $968.68

C. $937.32

D. None of the above.