Grossnickle Corporation issued 20-year, noncallable, 6% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4%. How much will this bond cost in a year after the interest rates increase to 9%?

a.

In a year this bond will cost $737.33

b.

In a year this bond will cost $1000

c.

In a year this bond will cost $1058.04

d.

In a year this bond will cost $719.72