Applebee sold an issue of 25 year, $1000 par value bonds to the public. The cupon rate of 7.5% is payable semi-annually. It is now three years later...

Applebee sold an issue of 25 year, $1000 par value bonds to the public. The cupon rate of 7.5% is payable semi-annually. It is now three years later and current required rate of return is 10.5%. What is the current value of the bonds? Round off to the nearest $1.

A) $744          B) $749          C) $812          D)883

What would be the answer?