Buffy acquired a bond today with a coupon rate of 8% (interest is paid semi-annually). She has five years remaining until maturity. She acquired the bond for $1,050. Interest rates dropped overnight to 5%. What is Buffys actual yield on this investment if interest rates remain at 5% and she holds to maturity (round to the nearest tenth of one percent)?

Group of answer choices

a. 6.5%

b. 6.8%

c. 7.0%

d. 7.5%

e. 8.0%