Bond A and bond B both pay annual coupons, mature in 8 years, have a face value of $1000, pay their next coupon in 12 months, and have the same yield-to-maturity. Bond A has a coupon rate of 6.5 percent and is priced at $1,056.78. Bond B has a coupon rate of 7.4 percent. What is the price of bond B?

a. $1,113.56 (plus or minus $4)

b. $1,001.91 (plus or minus $4)

c. $1,056.78 (plus or minus $4)

d. $1,000.00 (plus or minus $4)

e. None of the above is within $4 of the correct answer