One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 12%. What is the current price of the bonds, given that they now have 14 years to maturity? (2pts)

a. $900

b. $702

c. $890

d. $970

e. $923