The Bonds of Microhard, Inc

The bonds of Microhard, Inc. carry a 10% annual coupon, have a $1,000 face value, and mature in four years. Bonds of equivalent risk yield 7%. What is the market value of Microhard's bonds?

A) $1,011.20
B) $1,087.25
C) $1,095.66
D) $1,101.62
E) $1,160.25