Grady Corp sells a 4%, $1,000 bond on 1/1/16 for $851.23. The 10-year bond pays interest semi-annually every Jan and July 1. The market rate of interest is 6% and Grady uses the effective interest method. What is the bonds carrying value on 1/1/17?

Select one:

$856.77

$854.20

$862.47

$857.12