ABC Pharmaceuticals Inc. issued $100 million in bonds due in 10 years. After discussions with its investment banker, ABC decided that the bonds would be issued with a coupon rate of 7 percent with interest paid annually. The 7% coupon bonds were issued at par. Suppose one year after issuance, the company issues a press release stating it is under investigation by the SEC for fraud.

Suppose bond investors now require a 12% return on the bonds. The bonds price would be:

Group of answer choices

659.66

733.59

717.49

1021.77