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Company B issued 25-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 five years ago . Today, the market interest rate on

Company B issued 25-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 five years ago . Today, the market interest rate on these bonds is 5.75%. What is the current price of the bonds?

a.

$824.15

b.

$1202.94

c.

$1321.93

d.

$1181.45

e.

$1005.85

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