Ervins Enterprises has bonds on the market making annual payments, with 13 years to maturity, a par value of $1,000, and selling for $880. At this price, the bonds yield 10 percent. What must the coupon rate be on the bonds?

Multiple Choice

• 10.0%

• 8.86%

• 8.31%

• 9.22%

• 7.78%