Twelve years ago You purchased a 30 year bond with a call provision.

The corporation may call the bond any time after 15 years by paying one years interest as a penalty.

When you purchased the bond its coupon rate was 20% (paid semiannually), current bonds of similar risk pay 10% interest and interest rates are expected to remain low.

It looks like the corporation will call the bond.

What is the value of your bond today?

A. $1,253.79

B. $1,398.95

C. $1,846.11

D. $1,403.02