To help finance a new building, a university will borrow money by selling bonds, each with a face value of $1000, and a fixed annual coupon rate of 7%. If these are 30 year term bonds with annual interest payments, how much would a lender pay for one bond, assuming the market rate (or yield to maturity) was 9% per year?

a) 147.29 b) 794.56 c) 814.30 d) 1,248.18 e) none of the above