ABC Corp.s 20-year $1,000 par value bond has an coupon rate of 10%, paid annually. The current market rate on similar 20-year bonds is 8%. Which statement regarding ABCs bond price is true?

Select one:

a. The ABC bond is currently selling at its par value.

b. If market interest rates falls to 7%, the price of the ABC bond will also fall.

c. The ABC bond is currently selling at a price below its par value.

d. The ABC bond is currently selling at a price above its par value.