The Drifter Corporation has $100 million in floating-rate notes outstanding, with interest paid quarterly. The coupon reset formula is 3-month LIBOR plus 300 basis points. The coupon resets at the beginning of every quarter. There is a cap of 10% but no minimum coupon rate. Given the following rates for 3-month LIBOR, what is the coupon rate for the quarter:

(a) 3%

(b) 4%

(c) 7%

(d) 9%?