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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

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 11 percent. What is the current price of this bond?

Select one:

a. $656.06

b. $778.24

c. $1,106.59

d. $1,387.05

e. $1,672.51

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