A firm has a credit rating of BBB. Its $1,000 par value, 10-year bonds pay an 7% annual coupon. If the current market for BBB-rated debt is 9.00% how much would you be willing to pay for one of these bonds?

Select one:

a.

$871.65

b.

$941.51

c.

$958.15

d.

$1,000.00

e.

$900.10