Suppose a 3-year bond has a face value of $1000 and coupon rate of 7%. By prior agreement the issuer will be missing the second year's coupon but will pay it at maturity without interest. investors require 8% on this bond. What would be the price of this bond?

Select one:

a.

$969.78

b.

$798.8

c.

$890.4

d.

$1020