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A bond with a face value of $1,000 is currently trading for $1,135.91 and pays a semi-annual coupon. This bond matures in 10 years and

A bond with a face value of $1,000 is currently trading for $1,135.91 and pays a semi-annual coupon. This bond matures in 10 years and is yielding 8% (APR). What is this bond's annual coupon rate? If necessary your answer should be rounded to the nearest percent. (Rounding Examples: 4.5% would be rounded to 5%, 4.2% would be rounded to 4%)

A.

1%

B.

2%

C.

3%

D.

4%

E.

5%

F.

None of the other answers are correct.

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