A $1,000 face value bond currently has a yield to maturity of 8.89 percent. The bond matures in 7 years and pays interest annually. The coupon rate is 9 percent. What is the current price of this bond?

Select one:

a.

$656.06

b.

$778.24

c.

$989.12

d.

$1,005.56

e.

$1,268.95