One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 9.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?

Select the correct answer.

a. $1,377.29

b. $1,383.59

c. $1,389.89

d. $1,380.44

e. $1,386.74