A $1,000 face value bond is currently quoted at 93.7. The bond pays semiannual payments of$32.50 and matures in 8 years. What is the coupon rate?

A $1,000 face value bond is currently quoted at 93.7. The bond pays semiannual payments of$32.50 and matures in 8 years. What is the coupon rate?

a. 3.25 percent
b. 4.89 percent
c. 5.00 percent
D. 6.50 percent
e. 7.56 percent