You find that a corporate bond has a face value of $1,000, and it offers a 7% coupon (paid annually) with 20 years left to maturity. The yield (YTM) of this bond is 5%. What is the current market price of this bond?

Select one:

a. $1,000

b. $376.89

c. $872.35

d. $1,087.25

e. $1,249.24