The duration of a 10-year bond, with a coupon rate of 10% and a price of $1,000, is 6.76 years when the interest rate is 10% per annum. What happens to the price of the bond if the interest rate falls to 7.4% per annum? Based on the duration, the estimated new price will approximately be:

a.

$74

b.

$1176

c.

$824

d.

$840

e.

$1160