A bond has a $1,000 par value, ten years to maturity, and pays a coupon of 6.0% per year, semiannually. The bond is callable in five years at 105% of its par value. If the bond’s yield to maturity is 5.7% per year, what is its value?
1) $1,015.98
2) $1,012.45
3) $1,101.34
4) $1,022.63
5) $1,027.50