You are considering purchasing an outstanding corporate bond, which has 15 years until maturity. The bond has a 7% coupon, which pays interest semi-annually, and a par value of $1000. If your required yield is 5% and the bond just paid a coupon, how much will you pay for this bond?

a. 1307.45

b. 816.08

c. 1209.30

d. 769.41