Cougar Creamery has decided to issue bonds to raise capital to feed more missionaries at the MTC for the recent change. They were thinking to sell the bond at the par value of $1,000, but many mothers of the missionaries wanted to support the change so much that the creamery ended up selling them at $1,200. If the current yield to maturity is 8.93%, and the bond matures in 10

years and pays coupon semiannually, what is the annual coupon rate?

a. 6.00%

b. 6.28%

c. 12.00%

d. 12.56%