19. Lil Joe's Italian Deli, Inc. would like to open another new restaurant. They have observed that their current 10 year bonds which have a 7% coupon rate are selling for 105. If they want to finance the new restaurant with another 20 year bond issue, and wish to sell each bond for its par value of $1,000, the new bonds must have a coupon rate equal to:

a. 6.31%

b. 7.35%

c. A coupon rate above the 7% coupon on the current bonds

d. Cannot be determined from the information provided

e. None of the answers provided is correct