Business Finance Homework Help

I’m working on a business question and need guidance to help me learn.

You’re looking at two bonds identical in every way except for their coupons and, of course, their prices. Both have 10 years to maturity. The first bond has a 11 percent annual coupon rate and sells for $891.48. The second has a 12 percent annual coupon rate. What do you think it would sell for?