A company issued a 20-year bond four years ago that was priced at $988The bond has a face value of $1,000 and a coupon rate of 8%If interest rates have decreased by 1%, the price of this bond has increased ___________________(Assume coupons are paid annually)
a. $1,012.60
b. $1,021.20
c. $1,032.00
d. $1,043.80