Luther Industries needs to raise funds for a new office complex. The company plans on issuing 10-year bonds with a face value of $1,000 and a coupon rate of 7.0% (annual payments). The YTM for similar 10-year corporate bonds of various credit ratings are as follows; AAA: 6.85%, AA: 7%, A: 7.25%, BBB: 7.75%, BB: 8.5%. Assuming that Luther's bonds receive a BB rating, the price of bonds will be:

Select one: a. $901.58 b. $949.1 c. $982.64 d. $1,000