Happy Nappy Mattress Company Issued a 10-Year, 16% Bond in 2003

Happy Nappy Mattress Company issued a 10-year, 16% bond in 2003 that is callable at $1,100 in 5 years.In 2008 (today) the required return on bonds of this risk was 11%.The bonds pay interest semi-annually.What would you be willing to pay for one of these bonds today if you believe the bond will be called today?

A) $1188
B) $832.25
C) $1,100
D) $1,000