Greens Inc. recently issued noncallable bonds that mature in 12 years. They have a par value of $1,000

and an annual coupon of 5.8%. If the current market interest rate is 6.0%, at what price should the

bonds sell?

a S802 25

b. $983.23

c. $775.81

d. $881.60

e. $1,040.28