Ted just bought a 20-year US Treasury bond priced at par with an 8% coupon rate. After he bought it, the Federal Reserve loosened credit to stimulate the economy. As a result, similar bonds issued at par would have a 7% coupon. Estimate the price of Ted's bond now if its yield-to-maturity decreased to 7%.

Select one:

a. $900.00 to $925.00

b. $1,100.00 to $1,125.00

c. Less than $900.00

d. $1,025.00 to $1,050.00

e. $975.00 to $1,000.00

f. $1,050.00 to $1,075.00

g. $950.00 to $975.00

h. $1,075.00 to $1,100.00

i. More than $1,150.00

j. $1,000.00 to $1,025.00

k. $925.00 to $950.00