Suppose that you own a security that will pay $400 from year 4 to year 10. Your friend owns a security that will pay $300 forever, starting next year. All cashflows occur annually. If investors can earn 8% rate of return in this market, what is the maximum amount that you should be willing to pay your friend to switch the securities?

a) $1,667.45

b) $1,814.29

c) $2,096.81

d) $2,219.27

e) None of the above