J&J Manufacturing just issued a bond with a $1,000 face and a coupon rate of 8%. The bond has a life of 20 years, annual coupons, and a yield to maturity is 7.5%, what will the bond sell for?

1. A) $   975
2. B) $1,020
3. C) $1,051
4. D) $1,087
5. E) $1,162

A) $   975

1. B) $1,020
2. C) $1,051
3. D) $1,087
4. E) $1,162