A firm currently has a perpetual bond issue outstanding with a 10% coupon and a $1,000 par value. Now the firm can issue perpetual bonds at par ($1,000) with an 8% coupon. The total number of bonds outstanding is 500, and the costs associated with the new issue are $12,000. What is the current price of the old bonds?

a. $1,550

b. It is impossible to solve this problem without knowing BP Bonds current price

c. $1,200

d. $1,750

e. $1,250