Ted just bought a 20-year US Treasury bond priced at par with an 8% coupon rate. For simplicity, assume that the bond pays coupons annually. After he bought it, the Federal Reserve tightened credit to fight inflation. As a result, similar bonds issued at par would have a 9% coupon. Estimate the price of Ted's bond now if its yield-to-maturity rose to 9%.

Select one:

a. $1,000.00 to $1,025.00

b. $975.00 to $1,000.00

c. More than $1,150.00

d. $1,025.00 to $1,050.00

e. $1,050.00 to $1,075.00

f. $950.00 to $975.00

g. $925.00 to $950.00

h. Less than $900.00

i. $900.00 to $925.00

j. $1,125.00 to $1,150.00