Gabriele Enterprises has bonds on the market making annual payments, with 8 years to maturity, a par value of $1,000, and selling for $800. At this price, the bonds yield 6.8 percent. What must the coupon rate be on the bonds?

Multiple Choice

• 4.35%

• 6.95%

• 3.48%

• 3.58%

• 6.80%