Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 20 years remaining until maturity. You have expectations that in 5 years the YTM on a 15-year bond with similar risk will be 7.5%. What is the expected bond value in 5 years?

a) $956
b) $1,042
c) $1,132
d) $1,153
e) $949