Answer:
D. $1055
Explanation:
A callable bond is a type of bond on which the issuer has the right to repurchase it back or redeem. Unlike investors of an ordinary coupon bond, investors of a callable coupon bond tend to receive a higher return on their investment when the bond is redeemed by the issuer. In this case, the bondholder will receive an amount totaling to;
Original face value of bond + call premium
Face value = $1,000
Call premium = one year coupon payment = 5.5%*1000 = $55
Total amount = $1,000 + $55 = $1,055
