The zero coupon bond yield curve shows that the one-, two-, and three-year interest rates are 5.0%, 6.3%, and 8.4%, respectively. What is the price of a three-year bond with a face value of $700 and coupons of 12% paid annually

? (a) $703.89 (b) $549.55 (c) $764.48 (d) $698.53 (e) $769.84