Q-1: This morning, Alicia bought a ten-year 9% coupon bond that pays interest annually. She paid $994 for a $1,000 bond. If the market interest rate on this type of bond declines to 8.5% tonight, how much will Alicia receive for her first interest payment?

Select one:

a. $90.00

b. $70.00

c. $69.58

d. $32.31

e. $40.00