A bond that was first issued exactly one year ago today had an original maturity of 25 years, a coupon rate of 7.5%, and was issued with the promise to return the face value of $1,000 at maturity. Now, one year later and with 24 years left to maturity, the yield to maturity on the bond is 8.75%. Which of the following comes closest to the price of the bond? (assuming all promised payments are received)

a. $975

b. $1,173

c. $876

d. $1,074

e. $777