A company has a 10% bond that has a face value of $1000 and matures in 10 years. Assume that coupon payments are made semi-annually.

A company has a 10% bond that has a face value of $1000 and matures in 10 years. Assume that coupon payments are made semi-annually. The bonds can be called after 5 years at a premium of 5% over face value. What is the value of the bond if rates drop immediately to 8%?

A) $1,142

B) $1,136

C) $1,450

D) $1,332

E) $457