Zappo Corporation Just Issued $1,000 Face Value Bonds That Will

Zappo Corporation just issued $1,000 face value bonds that will mature in 20 years and have a 7% coupon rate. Interest is paid semi-annually and the required rate of return is 9% for these bonds. The bonds have a 5 year call provision that will pay a call premium of $1,050 if they are called in. What is the price of the Zappo Corporation bond?

A) $815.98
B) $817.43
C) $826.35
D) $920.87
E) $953.07