A company has 7-year bonds outstanding that pay an 5.3 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 13.1 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar)

Select one:

a. $656

b. $539

c. $2367

d. $1446