A $1000 par value bond that was issued two years ago by the Golden Ibis Corporation has a 6% coupon. If the prevailing market rate for interest on comparable bonds is now 7%, then the Golden Ibis bond pays its bondholders an annual interest income of

a. $60, and the bond would sell for less than its par value.

b. $70, and the bond would sell for less than its par value.

c. $70, and the bond would sell for more than its par value.

d. $60, and the bond would sell for more than its par value.